The AGET Heracles cement factory in Chalkida, a victim of dwindling construction activity in debt-crushed and austerity-buried Greece, closed on March 26, putting 236 people out of work.
The plant’s work will be transferred to its other operations in Volos and Milakio in Euboea. The company announced that it has invited representatives of the employees in a consultation to agree on the procedures for their mass layoffs.
As stated in the announcement, the restructuring is being done because of a falloff in the construction sector with housing starts disappearing and new commercial building at a near standstill.
The operation of the Chalkida factory had been dormant since July, 2011 although the business wasn’t closed officially. The company stated that, “This decision comes after a series of efforts with investments in new technology of the cement production and actions for new activities, in order to make this unit more competitive. However, despite the efforts, Chalkida factory suffered a severe reduction in sales due to the decline of the construction activity in Attica, the main market of the factory by 80% from 2008 until now.”
The customers and partners support in Attica will be under the responsibility of the Distribution Center in Drapetsona, while the service of the rest internal market will be offered by the factories of Volos and Milakio in Euboea as well as the Distribution Centers in Drapetsona, Thessaloniki, Kavala, Igoumenitsa, Rio of Patras and Heraklion, Crete.
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