Balta Carpets says it intends to "right size" its factory in Sint-Baafs-Vijve and move operations to the UK after saying broadloom manufacturing in Belgium has become "impossible."
In a company statement of intent issued today, the company said: "The difficult economic environment with exponentially rising labour costs, an unstable energy policy and the falling demand for broadloom carpet on the continent, makes competitive and profitable production in Belgium impossible."
Most of the broadloom operation will move to the UK plants of its parent company, Victoria plc.
"Balta Carpets will continue to focus on the sales and distribution in the UK and ROI of quality carpets that represent excellent value," said its statement. "Thanks to further investments in strongly increased local stocks supported with reliable distribution through the Alliance network, Balta’s customers will benefit from a stronger product offer and a better service than ever."
The €14 million investment plans to expand the Sint-Baafs-Vijve site for the production of Balta Rugs is going ahead.
The change, which local news reports say will cost up to 300 jobs at the site, follow the closure announced last year at Balta's yarn factory in Avelgem.
Victoria’s Belgian CEO Philippe Hamers has strongly criticised the Belgium government's manufacturing policy and the leading Belgium newspaper De Tijd said earlier this month that the historic textile industry in the Flanders region of Belgium “was in danger of being wiped out."
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