EMCC European Monitoring Centre on Change

Fabrica de Sticla Avrig

Company/Organisation:
Fabrica de Sticla Avrig

Geographic Location

Country: Romania
Region: Sibiu; Centru
Location of affected unit(s): Avrig

Company

Sector: Manufacturing
Manufacture of rubber and plastics products, and other non-metallic mineral products
23.1 - Manufacture of glass and glass products
Number Employed: 140
Group: ARC International

Employment Effects

Announcement Date: 31-07-2020
Planned Job Reductions min: 120
Planned Job Reductions max: 120
Type of Restructuring: Closure
Employment Effect Start: 31-07-2020
Foreseen End Date: 30-09-2020
Direct Dismissals: 120
Other Job Reduction Measures: 120

Additional Information

Romanian glass company, Fabrica de Sticla Avrig specialized in the production of hand-blown glass, has announced plans to close its glass plants in Avrig (Sibiu County) by the end of September 2020. Around 120 employees will be dismissed in this collective redundancy. All its products were exported to European (90%) and American (10%) markets. The plant was established around 1625.

According to a company's spokesperson, the reasons behind the closure are skilled workforce shortages, an oversized production compared to the actual sales over last years, very high personnel, gas and power costs, an ongoing bankruptcy process and the consequences of the COVID-19 outbreak.

In 2004, the plant was bought by the French group ARC International, the producer of the Luminarc glassware, for about $2 million and subsequently transferred to a company registered in the British Virgin Islands, Vois Group Limited.

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