Greiner Packaging has announced plans to close down two loss-making production facilities in Wernberg, Austria and Rastatt, Germany.
The Kremsmünster, Austria-based packaging firm said in a 3 July statement that it would cease operations by mid-2019 at the two units, which it said had been “losing money for quite some time”.
Some 110 jobs will be affected by the move.
Greiner has stated that its “comprehensive restructuring in recent years” failed to secure the business case for the two plants, as the environment is becoming “increasingly competitive”.
“Therefore, within the framework of a strategic process, we have decided to outsource certain production areas to other locations within the Greiner Packaging Group,” explained group spokesperson, Ute Kliemstein.
According to Kliemstein, bottle production, which constitutes the bulk of the Wernberg facility's business, will be transferred to the Greiner Packaging’s plant in Kremsmünster, Austria.
Greiner Packaging had already downsized its Rastatt site back in 2016.
At the time, marketing director Joerg Sabo, told PNE that the site was not successful “because of the outdated technologies/machines we were using there.”
Sabo told PNE that it was updating its machinery and technology at the site and cutting the number of jobs from 90 to around 50.
Greiner Packaging is one of five branches of the Greiner Group which consists of Greiner Packaging, Greiner Bio-One International, Greiner Foam International, Greiner Perfoam, and Greiner Tool.Tec.