By Liz White, UT staffBrussels-In Belgium, major foamer Recticel plans further reorganising at its Hulshout bedding plant, which makes mattresses and slat bases. Hulshout "specialises in 'nonbrand' products, which are sold by larger distributors as 'private labels' under their own brand name," said Recticel. "Profitability of this bedding activity is currently under considerable pressure," according to a 13 Sept statement from Recticel. This results from continuous price erosion in a declining market, coupled with rising production costs, the group added."As is well known, there have been further rises in the costs of both wages and raw materials," the firm's statement continued. The polyurethane processor listed various factors which have prevented it from passing on these higher production costs in its selling prices:• Growing concentration in distribution;• Local surplus capacity;• Sharply increased imports from low-wage countries of both semi-finished goods and finished mattresses, from eastern Europe, especially Turkey.Recticel's latest reorganisation of the Hulshout plant, which the firm has presented to its the relevant bodies, aims to reduce the workforce by 56 full-time jobs (51 blue-collar workers and 5 staff), from its current level of 180 people. Recticel said it will "do its utmost" to limit negative consequences and provide appropriate social support measures.Early in 2004, the group cut 80 jobs at its Recticel Woodbridge Moulded Foam joint venture in automotive seating, also based at Hulshout. The group also stopped two of the three foam production lines at the plant. "
