The Meggle Croatia dairy company said on Thursday it was restructuring its operations in Croatia and that it would phase out production in Osijek by the end of the year, laying off 160 workers.

The Germany-based Meggle Group is optimising its operations with the aim of setting business models viable in all markets in the long term, the company said in a press release, adding that a decision was therefore made to restructure operations in Croatia and phase out production in Osijek.

As of January 1, Meggle will operate in Croatia under a new business model.

The decision to restructure operations in Croatia and phase out production in Osijek was made due to years-long business challenges and a series of crises which impacted operations, from aflatoxins via the Agrokor conglomerate to the coronavirus.

In the restructuring process, the employer will ensure quality severance packages and social dialogue with workers and relevant bodies, the press release said.

The company said that over the past 15 years the group had invested over HRK 130 million in production and operations in Croatia.

According to the company’s website, Meggle Croatia is the third largest dairy company in the country with 185 employees.