Meggle to Move Production from Croatia to Serbia and BiH?

After the dairy factory Meggle Croatia announced that it would shut down its production in Osijek by the end of the year, which would lead to the layoff of around 160 workers, the Croatian media reported that the production would be moved to Serbia and BiH.

The prefect of Slavonia, Ivan Anusic, says that the press release issued by the company on Thursday does not feature any info about the production moving to Bihac and Kragujevac.

– The reasons are very simple: cheaper operations and possible simpler way of functioning. At the moment, I don't have this information, but I assume that that's what this is about, considering that the production is moving to those two countries – said Ivan Anusic, as reported by SeeBiz.

Meggle's press release says that the decision on the restructuring of the operation in Croatia and the shutting down of the production in Osijek was reached due to years of business challenges and crises which had a negative impact on the operations, from the aflatoxin crisis, through the Agrokor crisis, to the latest coronavirus crisis.

The press release says that the Meggle Group, headquartered in Germany, is carrying out a process of optimization of operations, to the end of setting up long-term sustainable operation models in all markets.

It is added that, in line with the decision on shutting down the production, Meggle will terminate cooperation with its subcontractors and suppliers in Croatia. The press release also announces that all the contract obligations towards them will be fulfilled in total and on time, as always.

The company reminds that, in the past 15 years, Meggle Group has invested more than 130 million kunas (EUR 17.2 million) in the production and the operations in Croatia. Meggle has been operating in Croatia since 1996.

MEGGLE AG Wasserburg Eastern Europe GmbH

MEGGLE Hrvatska d.o.o. Osijek

Meggle Group

Meggle

Slavonia

Ivan Anušić

shutting down on production in Croatia

Meggle moving production to Serbia and BiH