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Financial crisis reaches Western Romania: Massive layoffs in shoe, glass, paper and furniture factories

de Radu Rizea
Marţi, 28 octombrie 2008, 9:36 English | Business

"The global real estate crisis affects connected industries like the construction and furniture production. We produce paper for the cement packaging, mainly for export. We had to stop our deliveries. We had orders for furniture packaging, but the furniture isn't selling anymore", this is how the manager of a paper and cellulose factory in Dej explains how the global crisis develops vertically. Other factories in Cluj had to lay off all their employees.

A shoe factory in Turda lost all its orders and had to lay off all employees. The last orders came in August, the next ones will come, hopefully, in March.

The paper factory in Dej also saw the price for cellulose dropping from 600 to 480 Euros per ton, while in Romania the price for utilities and raw matters increased between 20 and 100%.

In the county of Cluj, official data indicate that 9,700 people were laid off because of the crisis and 4,500 more may also lose their jobs before the end of the year.

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