They transfer production from CHINA: Salary costs LOWER in NIS

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CEO of the Austrian Zumtobel Group, Alfred Felder, has announced that production will be relocated to Nis not only from Austria, but from China as well. He pointed out that the past business year was a year marked with high costs of restructuring the company. At a press conference in Vienna, Felder explained that the plant in Jennersdorf in Austria would be shut down by November, that is, that production was transferring to a new plant in Nis. Furthermore, he said that the production from the Chinese plant in Guangzhou would be relocated to Nis. In China, as he said, salary costs in coastal cities have reached the same level as in Portugal, and along with a long transport route, high logistic and storage costs, and customs duties, it is cheaper and better to produce in Nis today. Felder pointed out that the company had left the worst period behind and that it was recording a growth trend. He also announced savings in sales and administration of the company, adding that the negative effects of restructuring had a share in the business results in the previous financial year totaling 25 million euros, while they would be considerably lower in the current year. The number of the employees was reduced from 6,224 to 5,878, of whom 2,200 work in Austria. In Nis, as it was reported, 400 people currently work in the production plant in which the amount of about 30 million euros has been invested.

Source: BIZLife/B92/Tanjug

Photo: Pixabay