RUSSIA: Heineken to cut more jobs
Heineken is to cut another 140 jobs in Russia by suspending brewing at its Ivan Taranov brewery in the country, as part of the firm's global cost savings programme.
Brewing operations at the Novotroitsk-based brewery will be transferred to the Patra brewery in Ekaterinburg and the Shikhan brewery in Sterlitamak, Heineken said today (5 October).
The brewer said the decision is part of its Total Cost Management programme, a cost savings scheme that began this year and runs until 2011.
"By consolidating production onto next closest sites of the Shikhan and Patra breweries, we are able to further improve overall efficiency of our company and grow its profitability," said Heineken Russia CEO Dimitar Alexiev.
Capacity at the Patra brewery has more than doubled in the last four years.
"Heineken Russia has been investing a lot into the Russian beer market," said Alexiev. "After the investment project in the Volga Brewery last year, and the industrial expansion of the Patra Brewery we have secured considerable production capacity for the Ural region itself and its closest geographical areas."
Last month, Heineken said it would cut 130 jobs in Russia by closing brewing operations at the Stepan Razin Brewery.
The cuts come amid tough times for Russia's beer market.
Last week, Carlsberg confirmed that Russia's Government has proposed to triple beer excise tax from January 2010, while beer sales by volume for the overall market fell by nearly 7% in the first half of 2009, compared to the same period of 2008.
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