EMCC European Monitoring Centre on Change

Sugar Factory Osijek

Company/Organisation:
Sugar Factory Osijek

Geographic Location

Country: Croatia
Region: Osječko-baranjska županija; Kontinentalna Hrvatska; Hrvatska
Location of affected unit(s): Osijek

Company

Sector: Manufacturing
Manufacture of food products, beverages and tobacco products
10.81 - Manufacture of sugar
Number Employed: 260
Group: Sugar Factory Osijek

Employment Effects

Announcement Date: 16-02-2021
Planned Job Reductions min: 230
Type of Restructuring: Closure
Employment Effect Start: 01-02-2021
Foreseen End Date: 26-02-2021
Direct Dismissals: 230

Additional Information

The Croatian Sugar Factory Osijek is to cut 230 people in the city of Osijek. 

Hyperproduction and the import of foreign sugar led to a significant reduction in the sugar price.

Redundant workers obtained severance payment amounting to HRK 3,000 (€ 400) per year of previous work and four gross salaries.

The Croatian sugar-industry problems arose when Croatia did no longer benefit from European aids. In 2016 sugar beet was produced on 19,533 hectares, whereas it fell to 11,006 hectares in 2019. The Croatian Sugar Factory Osijek comprised of three relatively big sugar factories, geographically situated in the Eastern part of Croatia called Slavonia. One of them already closed in the City of Virovitica, and the same destiny is waiting for the Sugar Factory Osijek ltd. 

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