Valy to close Valjevo factory in Serbia

Valy, part of the Italian Golden Lady group, has officially confirmed the closure of its factory in Valjevo, Serbia. Production at the facility is expected to cease by the end of the year.

The company stated that the decision is part of a restructuring process aimed at consolidating all production activities at its Loznica plant, which possesses larger capacities and complete infrastructure. Valy expects this concentration to improve efficiency and competitiveness.

The closure will result in 737 employees, mostly women, losing their jobs. The company cited several economic factors for the decision, including declining consumption in key European markets, a significant drop in sales in the Russian Federation, and rising industrial costs, specifically regarding energy and labor.

Management has informed workers that all contractual obligations, including salaries, taxes, and contributions, will be met, and employees will be entitled to severance pay. While the company intends to work with local institutions to mitigate the impact, specific details regarding support or potential transfers to the Loznica plant remain unclear.