Vetropack Nemsova to cut workforce in 2005

Vetropack Nemsova, s.r.o, the largest Slovak producer of glass packaging will make 80 workers redundant by the end of 2005. Vetropack Nemsova currently employs 486 people, said company spokesperson Na…

Vetropack Nemsova, s.r.o, the largest Slovak producer of glass packaging will make 80 workers redundant by the end of 2005. Vetropack Nemsova currently employs 486 people, said company spokesperson Nada Dolejska. She said that the redundancies will take effect gradually from April to December 2005. In addition to investing millions in production upgrades, the company must also reduce its work force in order to remain competitive and keep production in Slovakia, said Ms. Dolejska. The company has prepared a program for employees laid off to help them find work. Growing competition is forcing the firm to increase workforce productivity, said Ms. Dolejska, citing the significant appreciation of the Slovak crown as another reason for the job losses. Strategic Investor Vetropack Holding AG finds production in Slovakia promising and wants to invest hundreds of millions of Slovak crowns in upgrades over the next two years. Vetropack Nemsova reported 10% year-on-year growth in total sales to SKK 566 million in 1H 2004. The glassworks sold over 173 million items of glass packaging over the first six months of 2004. Vetropack Nemsova is a subsidiary of Swiss group Vetropack Holding AG, a leading European packaging glass producer. In addition to its Slovakian facilities, the group operates production plants in Switzerland, Austria, Croatia and the Czech Republic. (EUR 1 = SKK 37.65 on 15 March 2005)