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SIG Combibloc division is closing one of its four plants in Europe at the end of October 2006, in its efforts to “increase production efficiency” and “meet changing market conditions in Germany”. The closure is expected to result in a loss of 125 jobs.
The Swiss-based company says that a cost-level comparison revealed that closing its Newcastle plant in England would help to “generate the biggest cost benefits for the European production group”. The production volumes of Newcastle will be subsequently spread across its three remaining European sites.
The company explains it has also planned for another 125 job cuts in Germany and Austria, as part of “a range of additional measures aimed at reducing labor costs”.
SIG had announced earlier that the restructuring would cost some $25 million, but believes the changes will allow the company savings in excess of $20 million annually.
SIG Combibloc takes restructuring measures
The Swiss-based company says that a cost-level comparison revealed that closing its Newcastle plant in England would help to “generate the biggest cost benefits for the European production group”. The production volumes of Newcastle will be subsequently spread across its three remaining European sites.
The company explains it has also planned for another 125 job cuts in Germany and Austria, as part of “a range of additional measures aimed at reducing labor costs”.
SIG had announced earlier that the restructuring would cost some $25 million, but believes the changes will allow the company savings in excess of $20 million annually.
SIG Combibloc takes restructuring measures
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