Žiri, 13 August (STA) - Alpina, the Slovenian-based sports footwear maker in Czech ownership, plans to lay off 60 employees at its main location in Žiri by the end of the year, the decision coming after one of its two production units in Bosnia-Herzegovina was shut down at the end of July.
The plan to lay off 60 out of the 228 workers in Žiri is part of a broader group reorganisation and optimisation plan, which will be presented to worker representatives and the in-house trade union after the collective leave, which ends on 15 August.
The company has told the STA that part of the production lines, including the assembly lines for skiing, cross-country skiing and hiking boots, will be moved to a production unit in Bosnia-Herzegovina.
The tool and machine facility and plastic injection moulding unit will remain at the company's headquarters in Žiri, as will all jobs with high added value - the development, marketing and sales departments.
Reorganisation will take place in all departments, and after the proposal is presented to worker representatives and the in-house trade union, the posts that will be made redundant by the end of the year will be determined.
The Alpina group, which has been owned by the Czech group K&H since mid-2022, employed 1,012 people at the end of last year. At the end of this June, the number was reduced to 948.
After the closure of one production unit in Bosnia-Herzegovina, which employed 90 people, at the end of July, and after the announced lay-offs in Žiri, the group will have approximately 800 workers at the end of 2024.
Last year, Alpina generated EUR 38.8 million in sales revenue, while posting a EUR 1.7 million loss. For this year, the management plans EUR 28 million to EUR 29 million in sales, or 25% below the original plan, and a loss of EUR 3 million.
The company is looking for financing options in the form of loans from various financial institutions. The management has also inquired at the Economy Ministry about loans, not subsidies. "No agreements have been concluded so far," Alpina said.
Director Amadea Kavčič Jesenovec told the STA that the announced steps are difficult and unpopular, but necessary to keep the company alive.
The reasons are the decreasing need for production capacity, the high costs of energy, transport and maintenance, the increase in the minimum wage and the immense pressure from the competition in terms of low production prices.
The number of pairs of shoes produced at Alpina has been dropping since 2017, when 642,000 pairs were produced. In 2019, the number stood at 403,000, and last year only at 141,000. This year, the company is to produce only 46,000 pairs.
Since last year, Alpina has thus focused entirely on developing and producing sports footwear, with the group's long-term strategy being to remain a leading manufacturer of cross-country ski boots and to again grow on the Alpine ski boot market.
Despite the financial problems and redundancies in production, the company said there is no shortage of innovative ideas. "The management and owners are aware that different and innovative products are the only true way to increase sales."
The management also noted that further development would not have been possible without the financial support of the owners in the past year and a half, which provided the required funds for the development of a new ski boot.
