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Gabor Shoes to close factory at end of year

Gabor Schuhe AG announced yesterday (Mon) that it would close its factory in Carinthia's Spittal and der Drau district at the end of 2010 after 50 years of operation.

All 170 employees will lose their jobs. This follows in the wake of 550 other jobs shed by the company in the last few years.

Gabor chief Leopold Ebner said the firm would draw up a social plan for its remaining employees expressed hope that someone would buy the factory, which occupies an area of 32,000 square metres. The building itself covers 15,000 square metres.

Gabor employed 1,300 people at the factory 12 years ago but then began to out-source production and lay off employees, including 300 in 2003 and another 250 a short time later.��
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Even production of prototypes of shoes to be produced elsewhere will be outsourced to Slovakia since production had to be made cheaper since customers had become worse off financially, the firm said.
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The Gabor facility in Spittal an der Drau district will be the last of the firm�s three factories to close in Austria since the early 1990s.

Gabor, based in Rosenheim, Bavaria, has production facilities in Portugal and Slovakia.

Austrian Times

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