Croatia-based food group Podravka is to shut a plant in Poland.
Podravka has started winding down production at its site in Kostrzyn, which manufactures seasonings under its Vegeta and Warzwyko brands. Production is expected to end in March. Around 45 staff are going to be affected by the move.
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The company said it had decided to produce the seasonings at its site in Koprivnica in northern Croatia after the country acceded to the EU last year.
Podravka insisted the move would have “a positive impact on business operations in 2015” as it will increase the use of production capacity at Koprivnica, thus reducing the product unit costs and staff costs.
It disclosed it would run up costs of HRK20.6m (US$3.4m) from the closure of the Polish site due to the write-off of assets and to severance payments.
The company added: “The decision to close the production capacities in Poland will not have any negative impact on Podravka’s sales in Poland and Podravka’s focus on expanding the range of products offered to Polish consumers will continue.”
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