Hit by weak dollar, Globus shuts down puree production
Tuesday, March 29, 2005, 00:00
Market leading canning company Globus Rt will suspend tomato puree production for an unspecified time and wind up apple puree production altogether to minimize losses due to the weak dollar, CEO Imre Eperjesi told business paper Világgazdaság. The company is also planning to discontinue manufacturing of certain fully processed products, however these will not include ketchup production. Once produced in quantities of over 10,000 tons per year, Globus tomato and apple purees have been gradually losing competitiveness to cheap products made in China and elsewhere due to high labor costs in agriculture and the energy costs of manufacturing. The company had Ft 796 million negative profit on Ft 34.3 billion revenue last year. The restructuring will definitely necessitate layoffs and the company will increasingly rely on seasonal labor in the future, Eperjesi added.