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Debreceni Csoport to close traditional sausage plant

The new owner of the Mosonmagyaróvár-based cured salami factory, Debreceni Csoport Kft, will close the plant only one and a half year later after buying it from Kaiser Food, regional daily Kisalföld reported. The decision to close the 160-year plant was made because the city has grown around the facility, preventing its expansion, the paper said. The 99 workers at the plant, which turns out 1,350 tons of product a year, will be laid off.

Debreceni Csoport bought Kaiser Food last summer and the acquisition was cleared by the Competition Office (GVH) in November. Debreceni Csoport's and Kaiser Food's combined share of the Hungarian market for sausage, salami and smoked and cooked meat does not exceed 20%, GVH said. Debreceni Csoport was acquired by regional investment company Penta in 2008.