Although they have examined all options that would have allowed an expansion of production capacity in Romania, Kraft Foods decided to shut down chocolate factory in Brasov, which, according to Doina Covache, Corporate Affairs Manager is not linked to the current economic context , but due to the limited space and location.
The company will reduce workforce by 440 by yearend
The fast-paced development of Kraft Foods business, the leading chocolate and food producer in Romania, has generated additional necessities of enhancing the production capacity, which were not possible at the factory in Brasov.
“Due to space restrictions in the existent buildings and location of production facility of Kraft in the city center, enhancement of production capacity at Brasov is not a viable option. There have been examined all production capabilities at our factories and opportunities to strengthen production activity in order to provide the required size to support a further development”, said Doina Cavache.
According to Kraft representative, the company has closely analyzed other possibilities that would have allowed the expansion of the production capacity and upgrade operations, but it did not find any “option viable to meet these demands in a feasible and sustainable way for Romania”, Doina Cavache added.
Relocating production from Brasov to Bulgaria was due to expansion capacities, in the existent location, of chocolate factory in the region, and to the proximity that makes the relocation feasible in terms of logistics. As for the production transfer from Kraft Foods unit from Brasov and in the region, Doina Covache said no decision has been made.
“The approximately 440 employees at Kraft Foods factory in Brasov will be discharged by the end of 2009. The lay-off procedure will be carried out in several phases. In the following period we will
