Croatian food establishment Podravka is planning to shut down its Podravka Polska factory in Kostrzyn, Poland, in a move to reduce its operational capacity.
Podravka has decided to locate its production operations for the European Union (EU) market in one place, Koprivnica, after Croatia's accession to the union last year.
The transfer of production to Koprivnica plant will increase its capacity utilisation.
The company will gradually reduce production at the Kostrzyn plant, with plans to completely terminate operations by 31 March. It is also expected to pay severance package to about 45 workers.
Podravka claims that the plant closure will not affect sales in Poland and will have a positive impact on its operations next year because of lower costs.
The company offers a wide range of products to over 40 countries across the globe. Its products include meat, ready meals, condiments, baby food, sweets and drinks.