Greek group Frigoglass, one of the largest manufacturers of beverage coolers in the world, will close its production facilities in Turkey and move production to its factory in Romania, near Timisoara, the group recently announced.

"The integration of the Turkish operations into our Romanian plant is a quantum leap for Frigoglass. It will drive economies of scale, improve overhead cost absorption and reduce complexity within our manufacturing footprint in Europe,” said Torsten Tuerling, Chief Executive Officer of Frigoglass.

The group explained that it has enough capacity at its Romanian plant to absorb the volume from Turkey and to meet any potential future demand. The group also said that it will continue to invest in product development in Romania. The company didn’t mention however how much it will invest.

Frigoglass posted EUR 13.8 million losses last year as its sales declined by 10 percent to EUR 522 million. The company’s main client is Coca-Cola which generates almost half of the group’s sales, according to the company’s annual report. Frigoglass produces coolers but also bottles and plastic crates for the bevereges industry.

The Frigoglass plant in Romania last year had a turnover of EUR 88 million with 770 employees. The group also has a production line in Iasi, where it produces plastic crates, which had sales of EUR 4.1 million. The plant in Iasi has 55 employees.

Andrei Chirileasa, andrei@romania-insider.com