Belgian textile manufacturer Nyobe Belgotex has confirmed the imminent closure of its plant in Kruisem, East Flanders, threatening 157 jobs, says Leen Van Lierde, the ACLVB/CGSLB trade union federation's secretary for East Flanders.
“The decision was taken after a thorough examination of ongoing losses and challenging market conditions,” the company explained in a statement on Tuesday. It cited several external factors that have had a negative impact on its competitiveness, including increased raw material and energy prices, changes in demand, and heightened competition.
Nyobe Belgotex has initiated a mass dismissal procedure under the Renault law. This law requires an employer planning a collective redundancy to respect a mandatory consultation period and provide a specific termination indemnity.
“The closure had been on the cards for a while due to declining sales and economic layoffs, mainly as a result of fierce competition from Asian firms," Van Lierde said, "but even for long-serving staff, this is a heavy blow.”
The union and management are scheduled to meet on Friday to start constructing a potential social plan.
Nyobe Belgotex, which produces nylon polymers and synthetic fabrics, was formed following the acquisition in 2019 of nylon producer Nyobe, active since 1976, by textile specialist Belgotex International.
Belgotex’s Belgian operations also include a carpet manufacturing plant in Renaix and an artificial grass factory in Harelbeke.
