EMCC European Monitoring Centre on Change



Geographic Location

Country: European Union
Location of affected unit(s): Hohenau (Austria), Rimavská Sobota (Slovakia)


Sector: Manufacturing
Manufacture of food products, beverages and tobacco products
10 - Manufacture of food products
Number Employed: 5100

Employment Effects

Announcement Date: 23-01-2006
Planned Job Reductions min: 259
Planned Job Reductions max: 259
Type of Restructuring: Internal restructuring
Employment Effect Start: 23-01-2006
Foreseen End Date: 31-08-2006

Additional Information

The Austrian sugar and fruit processing company Agrana, which has been listed on the Viennese stock exchange, will – in the course of a thorough restructuring – close down two of its 11 sugar factories, one in Hohenau in the province of Lower Austria (Land Niederösterreich) and one in Rimavská Sobota in Slovakia. 136 and 123 employees, respectively, stand to lose their jobs. In order to mitigate the consequences of the planned redundancies, social plans will be drawn up. According to the company’s supervisory board, continuously declining sugar prices and sizeable payments to the EU restructuring fund will greatly intensify pressures on the whole industry to reduce costs. Far-reaching rationalisation and concentration are therefore unavoidable for the industry in general and for the company in particular, the supervisory board stated. Both plants concerned have been processing beet during each year’s campaign.