September 21 (SeeNews) - Slovenian car parts manufacturer Cimos permanently terminated production at its plant in the northeastern town of Maribor on Friday due to lasting financial difficulties related to problems in the sector and the coronavirus pandemic, local media reported.
The management will offer the plant's 150 workers severance pay packages or employment at the company's subsidiaries in Slovenia and neighbouring Croatia, state broadcaster RTV Slovenija reported on Friday, citing information from the trade union.
Earlier this year, Cimos's three Slovenian plants - in Maribor, Senozece and Vuzenica - halted production for two months due to the coronavirus lockdown. When production resumed in early May, it was at reduced capacity.
Last year, local media reported that Italian investment firm Palladio Holding Group is considering the sale of Cimos, which its unit TCH Cogeme acquired in May 2017 from Slovenia's 'bad bank', DUTB. TCH Cogeme paid 100,000 euro for the then troubled car part manufacturer and invested a further 18.3 million euro into the company's recapitalisation.
Cimos manufactures mainly turbo compressor and turbine housings, power train components, chassis and car-body parts. The company has a production footprint in four countries in Southeast Europe - Slovenia, Croatia, Bosnia and Serbia.