EMCC European Monitoring Centre on Change



Geographic Location

Country: Croatia
Region: Varaždinska županija; Kontinentalna Hrvatska; Hrvatska
Location of affected unit(s): Veliki Bukovac, near the City of Varaždin


Sector: Manufacturing
Manufacture of wood and paper products, and printing
16.1 - Sawmilling and planing of wood
Number Employed: 550

Employment Effects

Announcement Date: 27-03-2021
Planned Job Reductions min: 200
Planned Job Reductions max: 200
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-04-2021
Foreseen End Date: 30-04-2021
Direct Dismissals: 200

Additional Information

Požgaj, one of the biggest producers of wooden products in Croatia is to layoff 200 workers, primarily a sawn lumber factory in Veliki Bukovac, near the city of Varaždin.

The state company Hrvatske šume (Croatian Wood) announced that in 2021 it would not be able to sell enough wooden raw materials for Požgaj Group. Therefore, the company declared that it would close the part of its production. Layoffs will be completed by the end of April. 

Požgaj Group includes a glued wooden panels factory, a parquet factory, a furniture factory and a wooden house factory. In total, they employ more than 550 employees in 6 factories at 4 locations throughout Croatia. About 90% of their finished products are exported to more than 25 markets throughout Europe and the whole world.