Alima-Gerber to cut employment but to boost exports

The Rzeszow-based production plant of Alima-Gerber, a division of pharmaceutical giant Novartis, is to become a launching pad for exporting products to the whole of Europe, Middle East as well as Africa. The company announced plans to concentrate on baby food and cease producing unprofitable products which will lead to laying off 180 out of the current 650 strong workforce. Those made redundant will be granted a severance package, additional compensation and special social and educational benefits. Over the past few years Alima-Gerber has recorded a fall in sales and production by over 50%, mainly due to a decrease in demand for Frugo and Smakus juices. Both of these products achieved unquestionable market success until late 2001, however, the company claims the profit margins on both of them were too low. Frugo and Smakus are no longer strategic products as they have been sold off. The fall in production will lead to restructuring in order to decrease the operational costs of the plant. Novartis also decided to lower transportation costs, and therefore the Rzeszow plant will take over some products from other foreign divisions. Lowering of overall costs and improved efficiency will be secured through a new computer system. Despite the reduction, Alima-Gerber will remain the country's leading producer of baby food. (Rzeczpospolita, p. B4) A.K.