Slovak financial investor Penta has decided to close a meat-processing plant in the Hungarian city of Debrecen. 

"The capacity of slaughterhouses in this country, especially ones owned by Danish and German companies, simply far exceeds demand. The competition is incredibly fierce," factory manager Viktor Szucs told just-food.

Szucs added that VAT on meat in Hungary runs at 25%, which, he claimed, is one of the highest rates in the world. 

The plant has been able to produce approximately 18,000 metric tons of lamb meat. At times, however, it was running at below 50% of its capacity.  

Most of the factory's production will now be moved to two other Penta facilities in Abda and Solnok.

"Some of our [almost 400] employees will be offered to work there but since both are both quite far away, we don't expect their number to exceed twenty," Szucs said.