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MEP Edit Bauer Calls on EC to Look Into Situation at Smurfit Kappa

Bratislava, November 18 (TASR) - The European Commission will look into the situation at the Smurfit Kappa paper-mill in Sturovo (Nitra region) as MEP Edit Bauer (ethnic-Hungarian SMK party) has asked the EC in writing to probe the activities of the majority shareholder of the company, which has decided to halt production and lay off all the employees.

Smurfit Kappa announced the closure on October 1. Most of the employees will be laid off by July 31, 2010. The management of the company rationalised the move by pointing to the abundance of production capacities in this sector and to the economic crisis, which has led to a drop in orders. Company trade unionists consider this explanation to be unjustified, however.

Economy Minister Lubomir Jahnatek labelled the lay-offs as a process planned a long time in advance. He claims that Smurfit Kappa wants to make way for another company and that he suspects shady practices. The company's management denies such accusations.

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