Brau Union Romania, the Romanian subsidiary of BBAG, the Austrian giant has announced it is to close a plant in Reghin in the end of September.

The move is part of a cost reduction process.

Beer production from the plant will be relocated to the company's factories in Miercurea Ciuc and Hateg.

After negotiations with trade unions some 220 people are to lose their jobs. They will be offered compensation of between 10 and 17 monthly salaries. There will also be a six-month consultancy and assistance programme for helping the redundant workers find other jobs.