The manufacturer of personal hygiene products Ontex announced on Thursday that it would reduce its workforce by 489 people at the Eeklo and Buggenhout sites in East Flanders. The company will now have 569 employees in Belgium (in Aalst and Buggenhout). Staff were informed of the closure of the Eeklo site during an extraordinary works council meeting.
40 million euros invested
This restructuring takes place as part of “the strategic transformation of the group aimed at strengthening its competitive position on the European market”.
The transformation of activities in Belgium will involve the conversion of the Buggenhout site into a center of excellence for medium and heavy incontinence products. Ontex will invest 40 million euros for this purpose in the coming years. “The research center and commercial activities, including sales and customer services, would remain in place,” management said.
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The design of feminine care and baby care products in Eeklo and light incontinence in Buggenhout is expected to be transferred to other Ontex factories in Europe, “with the aim of obtaining an optimal cost model to serve the retail and healthcare markets.”
The closure of the Eeklo production site results in the thanks of the 349 workers; the reorganization of Buggenhout will affect 140 workers out of the 528 active on the site.
“If the restructuring intention is confirmed, we expect to be able to find appropriate support measures in the interest of all employees affected,” commented Human Resources Director Jonas Deroo.
