July 5 (SeeNews) - Turkish textile company Jeanci plans to launch liquidation proceedings at its Serbian unit and close its factory in Leskovac, local media reported.
“We decided to liquidate due to material supply issues and conditions on the European market,” news outlet Blic quoted Jeanci as saying in a text message sent to its employees on Tuesday.
The factory has been in a difficult situation for the last three years, and could not manage to overcome the crisis and losses, Jeanci added.
A total of 654 workers will become unemployed, Blic said.
According to the Serbian business registry, Jeanci is owned by Turkey’s Jeanci Konfeksiyon Tekstil, which owns 84.43% of its capital. Private individual Aydoran Turkilmaz holds a stake of 6.96%, while three other individuals - Ayfer Buyukcan, Mumin Yazicilar and Selcuk Aytac, own 2.87% among themselves. It was established in December 2010 with a capital of 53,529 dinars.
Jeanci is mainly engaged in the production of custom made washed textile garments on behalf of its customer under their own brands, according to its website.