The Vetropack Group will shut a furnace at its Kremsmünster, Austria facility earlier than planned.
It said the closure of one of three melting furnaces will support long-term site development and is being taken as part of a planned merger of two furnaces into a larger and more climate-friendly production facility.
The merger of the furnaces is part of investment planning for the Kremsmünster site.
But it said due to the tense market situation in Europe, it had decided to bring forward the planned shutdown of one furnace.
Vetropack will start the shutdown process at the end of April and said jobs will be cut.
The majority of these will be temporary contracts and natural attrition.
Solutions are being worked out for the employees affected beyond this, including voluntary severance payments.
Johann Eggerth, General Manager Business Division Switzerland/Austria, said: “Kremsmünster will remain an important production site for Vetropack.
"Our investment plans remain unchanged, and we will merge the two tanks into a modern, more efficient plant as planned.
"This will strengthen the plant’s efficiency and competitiveness in the long term.”
The merger planned for 2028 will enable the company to produce at the Kremsmünster site in the future with a larger, more energy-efficient facility.
The facility's mould shop will also be relocated from Kremsmünster to Vetropack's other Austrian site in Pöchlarn over the coming weeks.
This step is part of the optimisation of site structures in Austria and is independent from the furnace closure plan.
