Ursus Breweries will close down one of its oldest production centers in Romania, the 130-year old Cluj – Napoca factory, which employs 161 people, the company has announced. The factory had the highest operating cost of all Ursus' production units in Romania and was located downtown, which made it harder to run logistically wise.

Only a small part of it will remain functional, to continue the brewing tradition in the city, according to the company. The production in Cluj – Napoca will be relocated to the company's other factories.

The decision was triggered by the difficult economic situation and by the drop in beer consumption on the Romanian market.

“The beer market continued to drop by more than a quarter in the last 18 months in Romania. Consumption decreased due to the drop in purchasing power, triggered by the difficult economic situation. Between April and September this year, Ursus Breweries volumes went down by 11 percent on the same period last year, which is however better than the evolution of the market, according to the company.

“The current production capacity of Ursus Breweries in Romania, with its four factories in Romania, is higher than what the market can sustain given the current economic situation,” reads a statement made by Ursus Breweries.

The company's employees in Cluj Napoca will receive compensation packages and support for professional reconversion, said Gary Whitlie, president of Ursus Breweries.

Ursus Breweries, part of the SABMiller group, produces and sells several beer brands: URSUS, Timisoreana, Ciucas, Peroni Nastro Azzurro, Grolsch, Azuga, Redd’s, Stejar, Pilsner Urquell and Miller.

editor@romania-insider.com