Not all investments end as hoped.
Such appears to be the story when it comes to Mitros Meatpacking Company and its Austrian owners, Gierlinger Holding GmbH, who benefited from EUR 5.3 mln in subsidies back in 2016 when Gierlinger acquired the plant.
At that time, the Austrian investor promised to employ 300 and up this number to 700, but, according to the company the plant in Sremska Mitrovica will soon stop production.
“Based on a detailed analysis of the company’s operations, the management and the owners of Gierlinger Holding GmbH were forced to make the difficult decision to stop the production activities in MITROS FLEISCHWAREN DOO in Sremska Mitrovica,” the company stated in a press release, as cited by Serbian Monitor and SEE News. “For the sake of transparency and being just to the employees, the employer has decided to notify the employees about this decision as soon as possible.”
The timing of the factory closing was not released, although the company added that it is a “difficult situation for both employees and management.”
At the time of the 2016 investment, Gerlinger Holding promised to invest EUR 16 mln, with a longer term goal of investing EUR 20 mln in the plant. Set up originally in the the 1950s, Mitros was a key meat producer in Yugoslavia, but Established in the 1950s, Mitros Meat Industry was a leader in former Yugoslavia. Swisslion Takovo became the owner of the factory following the first privatization in 2005, but the company faced bankruptcy by 2009.
Photo by sr:Корисник:Ant83 at sr.wikipedia, Public domain, via Wikimedia Commons.