Historic Austrian chocolate factory faces closure, 65 jobs at risk
7:48 AM EDT, June 15, 2024
The chocolate factory in Grödig, Austria, is going bankrupt. The company, known for its Mozart balls, is seeking a solution for 65 employees. The plant has been operating for over 130 years.
As reported by the portal dlahandlu.pl, employees were informed of management's plans on June 10, 2024.
The chocolate factory in Austria is closing
The decision is final - Salzburg Schokolade is closing its industrial plant in Grödig in eastern Austria, near Salzburg, the hometown of composer Wolfgang Amadeus Mozart.
The service reports that the company went bankrupt once, 2.5 years ago. The bankruptcy petition was filed with the Regional Court in Salzburg in November 2021. A few months later, the plant was taken over by the Romanian group KEX Confectionery.
In December 2022, part of the production was shut down, and 25 employees were laid off. The reasons included increased costs of raw materials, transportation, packaging, and energy.
In 2024, the decision was made to cease production entirely due to the drastic rise in raw material prices - cocoa prices have tripled. Additionally, the company ended its cooperation with one of its largest clients and concluded that the production facility was too large. "Long-term continuation of production is economically impossible," Salzburg Schokolade stated in a communication.
Salzburg Schokolade is considering the future of 65 employees
The company, in cooperation with the local employment office, is considering how to address the employment issues of the 65 people working in Grödig. Discussions are ongoing with investors regarding the sale and further use of the plant.
The PRO-GE union is calling for an appropriate social plan for the employees. It points out that "it was not possible to secure the future through proper investments and modernization measures."
Salzburg Schokolade is an Austrian family-owned company and candy manufacturer that has been in operation since 1890. It is known for, among other things, Mirabell Mozartkugel, the popular Mozart balls, which are made according to the recipe of confectioner Paul Fürst.
Dark clouds over the chocolate manufacturing sector
Salzburg Schokolade is not the only chocolate manufacturing company facing challenges. Just a few days ago, we reported that the French chocolate factory Poulain is also going bankrupt.
Plans include halting production and laying off over 100 employees. The closure of the plant is opposed by labor unions, as well as local and regional authorities. The factory has been operating for 176 years.
