US clothing maker HanesBrands announced it would close down its production facility in Arad, Western Romania, while other companies employing over 5,000 according to local media estimates will announce similar plans.

"Wages have increased quickly, the workforce has become scarce, and we had to cut down production pushing down the competitiveness as well," HanesBrands officials told Ziarul Financiar daily.

The company relocated production to Vietnam. Some 80% of the company’s employees have already found new jobs, they added.

A big company employing 3,000 in Arad, which was among the first international investors in the area, is reportedly planning to move its production facility from Arad to Macedonia. Another major company in the automotive sector, employing some 2,000 alone, will close down, NewsAR.ro announced. Key Safety Systems (KSS), also in the automotive industry, already moved its production capacities from Curtici (on the border with Hungary, close to Arad) to Miskolc in Hungary.

editor@romania-insider.com

(Photo source: Pixabay.com)