Unilever moves two margarine production lines from Czech to Romania

Unilever, one of the largest consumer-products companies will move two of its production lines to Romania, after closing down its facility in Nelahozeves, Czech Republic, Unilever representatives told Wall-Street.

“Since 1995, Unilever has invested over €120 mln in Romania, and the facility we have in Ploiesti is one of our most modern production units in Europe. The unit in Ploiesti took up production output of Unilever’s units in Targu Mures, Otopeni and Dobrich (Bulgaria). The move is aimed at improving Unilever’s operations, reduce costs and accelerate the process of launching new products”, said Unilever.

The relocation process will be initiated once the shutdown of Unilever’s unit in Czeck Republic is completed. The two production lines will become operational in early 2010.

The lion’s share of the output is destined to export in Germany and other Central European countries. Unilever forecasts a 50% increase in Ploiesti-based unit’s production output.

As for the Unilever’s future plans in increasing workforce, the company said it would soon provide further details on the issue.

Unilever, the world’s second largest consumer-products company said it would gradually reduce production at Nelahozeves unit, following to shut down activity in the second quarter 2010. Around 635 jobs will be axed.

The company reported a 17% decline in profit in second quarter, following price cut measures in an effort to avoid consumers’ shift to cheaper products. Net profit fell to €758 mln, from €909mln in second quarter 2008.

Unilever South Central Europe started operating in Romania in 1995 and manufactures food, home care and personal products. The company’s portfolio includes Rama, Becel si Delma margarine, Knorr soups and dressing, Lipton tea, Delikat and Knorr seasonings and, Dove (personal care) and Cif and Domestos (home care).

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