Frigoglass to cut jobs in Greece, Poland

Greek cooler maker Frigoglass (FRIr.AT) said on Tuesday it plans to cut its workforce in a domestic unit and close its Polish factory as part of a plant restructuring programme.

The world's largest maker of drink refrigeration equipment said it would reduce its workforce at its Kato Achaia plant by 120 employees, out of a total of 210 workers, through a voluntary redudancy scheme.

"The cost of the proposed severance package is estimated at 8.5 million euros, and will be recorded as an exceptional charge in Frigoglass' full year 2008 financial results," the company said in a statement.

"The voluntary redundancy scheme reaffirms the management's proactive approach towards production rationalization and will allow for a speedier margin recovery during 2010-2011", Piraeus Securities said in a morning note.

Frigoglass also said it was closing its plant in Poland in response to the rapidly deteriorating global economic climate.

The announcement follows a statement in October that the company would restructure its Polish plant. [ID:nLO116771]

Frigoglass shares were down 4.00 percent to 3.36 euros at 1000 GMT, compared to losses of 0.67 percent for the general index .ATG.
Source: By Tatiana Fragou, Simon Jessop, reuters.com