07 September 2022
12:56
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Balta Rugs closes its yarn and carpet manufacturing unit in Avelgem. 250 to 260 of the 486 employees, predominantly blue-collar workers, eliminate their work opportunities. Creation will move to other Balta sites in Belgium and Turkey. “The significant electricity prices had been the final straw.”
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Carpet maker Balta Rugs, whose Belgian factories ended up offered in April by West Flanders-outlined carpet organization Balta Team to British organization Victoria, wants to near its Avelgem workplace. This was announced by the British father or mother firm in a unique performs council. The manufacturing unit employs 401 personnel and 85 clerks.
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About 50 percent of the site’s employees can carry on to do the job at Balta Rugs in the Sint-Baafs-Vijve and Sint-Eloois-Vijve factories. Component of the functions will move to these two other Belgian internet sites, yet another component – the generation of yarns – to Turkey. The firm refers to the hard economic context, with structurally growing charges impacting mostly the yarn sector.
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We now pay 10 moments much more for our strength expenses than two decades back. It was no lengthier viable.
Marco Layout
Topman white carpet
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“The Avelgem plant is thoroughly built-in – from yarn production to carpet creation – but the yarn creation has been stopped for seven months”, states Marc Dessein, CEO of Balta Rugs, who, in addition to Avelgem, also manages the site in Sint-Baafs-Vijve, Sint-Eloois-Vijve and two Turkish factories. Until the conclusion of August we experienced govt guidance as an extension of the crown steps, but now it is above. The production of yarn and the ending of that yarn calls for a good deal of electricity and manpower and has not been financially rewarding for several several years. ‘
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‘Now the significant electrical power fees have been added. That was the previous straw. It was for that reason made the decision to close the output in Avelgem and to transfer it to other factories of the team. We now pay out ten situations a lot more for our electricity charges than two many years ago. It was no more time feasible. When compared to Turkey, the place energy and fuel charges have also risen, power expenditures are however 2 to 2.5 instances better in this article. ‘
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Investments
The Sint-Eloois-Vijve factories – in which they work at 75% of ability – and Sint Baafs-Vijve – significantly less than 50% – are also at this time working at a decrease degree owing to substantial electrical power rates.
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Balta Rugs will invest € 14 million to enhance and modernize the logistics ability in Sint-Baafs-Vijve. This area will come to be Balta Rugs’ central distribution heart in Europe. More investments are also prepared in Turkey.
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Dessein emphasizes that he proceeds to believe that in the creation of yarns and carpets in Belgium, concentrated in two spots in its place of three. “With these interventions we can strengthen the usefulness of our division and offer just about every option to the long run of our routines in Belgium.”
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Balta-Victoria took about 4 factories this year – Avelgem, Sint-Baafs-Vijve, Sint-Eloois-Vijve and Oudenaarde – from the Brussels-outlined Balta group, which will soon alter its identify. Balta Industries, of which Balta Rugs is a part, makes cloth ground coverings – plain tapis and free rugs – and sells in far more than 130 international locations. The group employs extra than 2,500 individuals in eight production plants and distribution facilities in Belgium, Turkey and the United States.
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