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7th December, 2018

Lear closes Gyöngyös factory

Lear Corporation is closing its factory in Gyöngyös by the end of December, citing rising labour costs, the car parts manufacturer announced on Thursday.

The high cost of labour means that the production of car cables is no longer profitable in Hungary, the company said.

Lear employs 500 staff in Gyöngyös and is the largest taxpayer in the town.

About 20 employees have accepted the offer of further employment with Lear in Gödöllő, 50km away; the rest of the workers are dismissed.

Lear’s severance payments to the laid-off employees will exceed the minimum required by law.

The US company is moving its more labour-intensive activities to factories in Ukraine, Serbia and Romania.

Lear closed its car seat factory in Mór for similar reasons last year.

Lear continues to employ 1,100 personnel in Gödöllő and 500 in Győr.

Sources regularly consulted, with abbreviations used in text: Népszabadság (N); Magyar Hírlap (MH); Világgazdaság (VG); Napi Gazdaság (NG); Magyar Nemzet (MN); Népszava (Nsz); Kossuth Rádió news (KR); nightly TV news (TV).

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