Ontex to Cut Nearly 500 Jobs in Flanders

Nappy manufacturer Ontex has announced plans to cut nearly half of its Belgian workforce, with 489 jobs at risk in Eeklo and Buggenhout, East Flanders. The decision comes as the company cites significantly higher production costs in Belgium compared to competitor countries.

During special works councils, Ontex management revealed intentions to restructure its Belgian production and distribution activities. This restructuring involves the complete closure of the Eeklo plant, resulting in the loss of all 349 jobs. Production of women's and baby care products currently manufactured at Eeklo will be relocated to other European Ontex facilities.

Additionally, the Buggenhout site will be transformed into an "expertise centre for research, development, and production of medium and serious incontinence care products." Despite this transition, 140 of the 528 jobs at Buggenhout are at risk. Ontex has also promised a €40 million investment to modernize and automate production at Buggenhout.

Light incontinence products currently produced in Buggenhout will be moved to another European plant. However, the research and development department and the commercial arm, including sales and customer services, will remain operational at Buggenhout.

The company aims to streamline its operations to maintain competitiveness in the market while addressing the challenges posed by higher Belgian production cost.