Unilever to close detergent factory in Romania by end of 2024

The Anglo-Dutch group Unilever has announced that it will close the powdered laundry detergent factory in Ploieşti, Prahova County, by the end of 2024. The factory makes the Romanian brand Dero, but production is set to be relocated.

Several hundred people work at the factory, according to Ziarul Financiar. "Our colleagues are our main priority at the moment, and we are focusing our efforts on finding the best solutions for them," said Gabriel Oprea, the director of the Ploieşti factory.

Unilever Romania, which operates Unilever's production in Prahova County, producing spices and detergent in Ploieşti, had about 630 employees at the end of 2022, according to data from the Ministry of Finance.

The closure only affects detergent production, with food production at the location being expanded in the last three years.

The factory in Ploieşti was the group's first venture into production in Romania, dating back almost 30 years.

Locally, Unilever's story began with the first imports of products in 1991 and was consolidated through the acquisition of the Dero Factory in Ploieşti in 1995. The closure reportedly came as a result of a decrease in demand for powdered detergent and an increase in the costs of the local factory, despite the detergent being among the cheaper ones in Europe.

Company representatives say that the Dero brand will not disappear. It was, in fact, the only Romanian name in an industry dominated by foreign brands such as Ariel, Tide, Omo, or Persil.

Also in Ploieşti, in 2006, the Unilever Food Products Factory was established through the relocation of operations from three units - margarine factories in Târgu Mureş and Bulgaria and the Knorr factory in Otopeni. Today, Knorr and Delíkat are produced here. In the last three years, the group has invested EUR 48 million in expanding this food production capacity, while closing down factories in France, Belgium, and Hungary, possibly even Finland.

Unilever’s portfolio includes food products like Knorr, Magnum, or Hellman's, and non-food products like Dove or Domestos. The Anglo-Dutch giant is present in the local market with import and distribution operations on one hand, and production on the other.

The group has factories in Suceava, where ice cream is produced, Ploieşti, where it makes detergent and food, and Bucharest, producing food. The factories are operated separately.

Unilever Romania, which operates the detergent and food factories in Ploieşti, had a turnover of RON 160 million (EUR 32.2 million) last year, up nearly 60% in 2022 compared to 2021.