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Smurfit Kappa in Sturovo Ends Production of Corrugated Cardboard
Wednesday 31 March 2010 Zoom in | Print page
Sturovo, March 31 (TASR) - Paper-processing company Smurfit Kappa in Sturovo (Nitra region) on Wednesday completely shut down its production of corrugated cardboard, with as many as 298 people losing their jobs as a result.
"The employees will be leaving gradually, until June. Most of them are leaving as of tomorrow, however. Originally, the company announced that it was reducing staff by scrapping 325 jobs, but some of them will be transferred to carry out administrative jobs, or to work as ancillary staff," said company spokesperson Katarina Korecka.
The staff who are leaving will receive severance pay worth at least 12 average monthly salaries, it was reported.
Smurfit Kappa Sturovo announced its plans to end corrugated cardboard production on October 1 of last year, citing excessive production capacity in this sector, which, along with the global economic recession, has significantly reduced demand for its products.
The cessation of production of corrugated cardboard has had a negative influence on several other firms with business ties to the company. This is the case for MCE Industrietechnik Slovensko, which provides maintenance work and technical support for Smurfit Kappa. The company has announced staff reductions involving some 60 jobs in the next few months. In addition, Beta-car, which sells and leases fork-lift trucks, said that 30 of its employees will lose their jobs as of April 1.
It was also reported that Czech paper-processing enterprise JIP-Papirny Vetrni has expressed interest in buying Smurfit Kappa, but the Smurfit management have refused to comment on ongoing business talks in this area.
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