Savencia closes its processed cheese production plant in Répcelak
Savencia Fromage & Dairy Hungary Zrt. (formerly Pannontej) is reorganizing its operations in Hungary, closing its processed cheese production plant in Répcelak and further strengthening production in Veszprém, the company told MTI on Tuesday.
The company emphasized that the reorganizations are being implemented this year to ensure the security and sustainability of its business operations and supply chain.
According to the company, the processed cheese production plant in Répcelak is expected to be closed by the end of 2025 as part of a group-wide rationalization process. The decision affects approximately 160 people, and employees are offered jobs at their sites in Veszprém and Kemptem, Germany. Those who do not take advantage of the opportunity will be provided with a more favorable severance package than those stipulated in the law and the collective agreement, and everything will be done to ensure that those affected find new jobs as soon as possible – they wrote.
They highlighted: based on the company’s industrial strategy, the Veszprém plant has become the European production and R&D center for breaded products with an investment of several million euros in recent years. Further developments are planned here.
The cessation of production in Répcelak is the end of a long process, during which all options were examined to increase efficiency – the company’s statement reads. The utilization of the Répcelak factory has been low in the recent period, and the modernization would have required an investment of such a scale and difficulty that, according to the company, it was not economically justifiable, and production was no longer sustainable in the long term. According to the plans, the production of processed cheese products will gradually be transferred to the modern plant in Kempten, Germany.
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