Swiss-based shoemaker Rieker will close down its Romanian factory, located in the western city of Lugoj, with all the 663 workers to be made redundant next month.

The company said that lack of workforce, high utility costs and the need to spend a lot on workers’ transport pushed it to this decision, according to local Profit.ro.

Rieker Romania reported RON 264.7 million (EUR 57 million) revenues and RON 2.8 million net profit in 2017, according to the latest data available at the Finance Ministry. The company started production in Romania in May 1998.

Founded in Germany in 1874, Rieker was originally a shoe manufacturer for wealthy people in northern Italy. Today, headquartered in Switzerland, the company has around 20,000 employees and factories in Eastern Europe, North Africa, and Vietnam, delivering to about 9,000 independent traders, mainly in Europe.

editor@romania-insider.com

(Photo source: Facebook/Rieker)