Boxmark decided to close down its Slovenian plant. Boxmark Leather manufactures leather seats for the automotive, aviation and boating industries, as well as being a third-party manufacturer for others. The company has allegedly announced that, within the first few months of 2020, it will interrupt its production operation in the Murska Sobota site.
Shut Down and Relocation
Murska Sobota’s plant, which was inaugurated 5 years ago, is specialized in cut & sew, and currently employs 184 individuals. The company did offer them the opportunity to relocate to its other Slovenian plant of Kidricevo, located about 1 hour away.
Why?
Slovenian online portal 24ur.com explains that Boxmark is shutting down its plan due to the slowdown of the automotive sector. Moreover, the source also cites the lower need for personnel created by technological advancements in manufacturing. “We have made many technological changes over the last 5 years – confirms Marjan Trobiš, plant director, to blic.rs -. Client needs change over time and require constant efforts. We can state that the company has decided to follow market demands. We changed our processes to make them more technological via the implementation of new solutions. These new processes aren’t as elaborated, and thus the need for physical workers is lower”.
The Precedent
As reported by agency Sta, Boxmark had also shut down its production site in Otiski, western Slovenia, in 2017. The company claimed that it would have needed more machinery to sustain the production volumes needed keep up with market demand. Additionally, the company stated it had already invested resources to strengthen the capacity of the Kidricevo plant”.
Image taken from sobotainfo.com
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