Carpet manufacturer Balta is planning a major reorganisation: the majority of production activities at its sites in Sint-Eloois-Vijve (Waregem) and Sint-Baafs-Vijve (Wielsbeke) will be relocated to Turkey. This strategic restructuring threatens 529 jobs, more than half of the current workforce of 839.
© Balta Group
Balta Group's carpet factory in Sint-Baafs-Vijve.
The company plans to discontinue yarn production and carpet weaving and finishing in Belgium. Only the production of high-quality carpet and part of the finishing will remain, as well as the warehouse and administrative services. According to Balta, continued cost and market pressures mean that production in Belgium is no longer financially viable.
Trade union delegate Renilde Rommens (ACV) cited several causes: 'The corona crisis, rising energy and raw material prices, inflation, geopolitical tensions and falling consumer confidence have all contributed. The company hoped for a recovery in the carpet market, but large orders did not materialise.'
The restructuring envisages the gradual dismissal of 467 workers and 62 white-collar workers within an 18-month period. 'A heavy blow,' said Rommens. 'We see it more often in the manufacturing industry, especially within the textile sector. If nothing changes in the policy to keep production feasible here, more companies will follow.'
The Renault Act is being applied. 'We will start negotiations on a social plan as early as tomorrow,' confirms Rommens. This marks the beginning of a drastic period for a company that once employed 3,000 people.
Source: HLN