June 4 (SeeNews) - German men's clothing manufacturer Dr. Bock Industries said on Thursday it is shutting down its RHM Pants factory in Estelnic, Romania, due to a lack of demand prompted by the coronavirus pandemic.
Due to COVID-19-related demand failures and order cancellations on by the plant's most important customers, the utilization capacity of the Romanian production company cannot be guaranteed, the company said in a regulatory disclosure filed with the Vienna bourse.
The management and supervisory board have decided to shut down the plant because the identified drop in demand cannot be compensated for by short-term measures and because the market is not expected to recover in the short term, the company explained.
Founded in 1992 in Covasna county, RHM Pants is one of the biggest trouser producing companies in Romania and employs 620.
Dr. Bock Industries operates three more plants in Romania which employ a total 700 people, according to data published on the company's website.
The garment washing and dyeing plant Ready Garment Technology, founded in 2000 is located in Sfantu Gheorghe, Covasna county.
Men's trousers producer The Transilvanian Trousers Company was founded in 1994 in Sfantu Gheorghe, Covasna county.
Specialised in producing men's sports trousers and jeans, Platanus was founded in 2003 in Baraolt, a town situated in the northern part of Covasna county.
Founded in 1984, Dr. Bock Industries AG manufactures men's clothing. It employs a total of 1,500 people in nine units located in Romania, Bulgaria, Ukraine, Italy and Germany.