Interagro to shut down all its factories and lay off 6,700 employees

Miercuri, 25 martie 2009, 22:08 English | Business

Interagro will shut down all its factories by Monday, and will start up all necessary procedures: notify authorities regarding the decision to lay off all its personnel, namely 6,700 people, Interagro owner Iona Niculae declared, quoted by NewsIn.

Niculae declared that the procedure to lay off personnel was initially planned for last year. However, after an agreement with the Agriculture minister, the ministry agreed to offer some financial support for the sector. However, Niculae declared that the ordinance ruling this measure did not appear on the parliamentary agenda until today and thus he is compelled to lay off its personnel immediately.

The businessman declared that the group will register some 100 million dollars losses due to the decision to shut down all its factories. He explained that in the last years the company has invested in new technology to comply with norms and standards which now lead to an increase in the losses incurred.