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Pago will close down headquarters

The fruit producing company Pago will shut down its headquarters in Klagenfurt at the end of 2013 and move to Upper Austria. Production will be outsourced to Spain and France. 110 employees will lose their jobs.

The board of the Eckes-Granini-Group announced the closing at the venue in Klagenfurt yesterday (Mon). The group had just taken over the company from Brau Union.

"We are going to close down the venue before the end of the year", said chairperson Thomas Hinderer. "We are, however, going to support our staff and create a social plan."

The company’s cost structure is too high and they are not using full capacity. Furthermore, the turnover decreased over the years and in 2012 the company made a loss of four million Euros.

The brand "Pago" will, however, remain Austrian. The headquarters will move to St. Florian in Upper Austria. Eckes-Granini is outsourcing the production to France and Spain.

The Group did not buy the company in order to close it down: "We have been testing whether we can increase the volumes in Klagenfurt, which has not worked out", said Mr Hinderer.

The staff in Klagenfurt is left speechless and horrified. The salaries for the next 10,5 months will be guaranteed but it is unclear how employees will cope with the crisis the branch is facing at the moment.

The fruit producing company was found in 1888 by Jakob Pagitz. The small manufactory became Pago in 1949 and can now be found in 30 countries of the world.

The bad news has induced over 1,000 people to demonstrate solidarity with the company on Facebook.

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