April 11 (SeeNews) - German personal and home care products manufacturer Dalli said it will close or sell its factory in Timisoara, Romania by the end of 2022 as part of a wider restructuring plan due to rising commodity and energy prices.
"Dalli-Group plans to cease operations at the Warth [Austria] location step by step by the end of 2022, after which it will close the plant. In Timisoara, too, it is planned that the Dalli production will be handed over by December 21 2022, either by sale or by closing," Dalli-Group said in a statement last week.
Dalli also plans to reduce the number of employees at two factories in Germany - Stolberg and Flörsheim-Dalsheim, and at two plants in the Netherlands - in Hoensbroek and Heerde. Moreover, the company will abandon, by 2030, the production of unprofitable items such as dishwashing detergents and household care products, as well as some hair and body care products.
"Continuous market changes as well as rising commodity and energy prices are forcing a fundamental restructuring to secure the company's future," the group said in the statement.
Dalli bought the Timisoara detergent plant from U.S. multinational consumer goods corporation Procter&Gamble (P&G) in 2014. P&G bought the plant from the Romanian government in 1995.
The company operating the plant, Dali Production Romania, booked a net profit of 9.3 million lei ($2.05 million/ 1.88 million euro) in 2020, the same as the 2019 profit, on a turnover of 435 million lei, compared to 388 million lei turnover at the end of 2019, data available on the finance ministry's website showed. The company employed 320 at the end of 2020.
(1 euro=4.9409 lei)