Levi-Strauss closes plant in Hungary, lays off 549 workers

American jeans manufacturer Levi Strauss announced on Friday it would shut down its plant in Hungary by the end of June, laying off 549 workers.

“In the European, Middle Eastern and North African region the company has more capacity than what demand would justify, that is why the Kiskunhalas factory will be shut down,” company spokesman Tamas Torba told AFP.

Levi Strauss has been making jeans in Kiskunhalas, about 150 kilometres (about 90 miles) south of Budapest, for the region since 1988.

It announced at the beginning of March that it would start talks with trade unions about the closure of the factory, hit by decreasing demand due to a recession.

An agreement was signed with the workers’ representatives and the factory is set to close by the end of June, leaving all 549 employees out of work.

Levi Strauss has two plants in Poland and Turkey. Their production would be enough to supply the region, the spokesman said.

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Source:AFP