Australian Hayco introduces drastic measures at CTR
The Australian manufacturer of diffusion devices Hayco that purchased the Portugal-based firm CTR in January has implemented “drastic measures” after being “caught by surprise” by the company’s deteriorating economic-financial indicators and unstable labour situation affecting the FMCG sector worldwide.
“In recent months we have seen a significant fall in sales of around 40% on 2022, including the cancellation of orders that had been previously agreed with our clients”, states an internal memo at CTR.
According to Negócios citing a CTR source, the 40% decline in sales has to do with the activity at the company’s factory in Portugal, but there have also been problems with the company globally since the Fast-Moving Consumer Goods sector (FMCG) has suffered a fall in business all over the world, and that given the current economic situation worldwide, non-essential products, such as the ones CTR manufactures, are most affected.
Faced with this scenario, “recourse to existing legal mechanisms had to be enacted to deal with the falls in production by not renewing 61 fixed-term contracts” at its Samora Correia factory”. This would reduce the company’s workforce to 312.
Founded in 1991 by Pedro Queiroz Vieira and Vitor Oliveira, CTR develops and supplies products to large multinational FMCG companies. CTR comprises 1,100 employees in Portugal, China, India, and the United States. CTR is a signiﬁcant player in household devices for air care, pest control and other product areas including pet care. The buyout was to complement Hayco’s capabilities which include home cleaning, oral care, water filtration and hydration devices. The new combined entity plans to boost innovation product development, and business expansion for customers. CTR and Hayco share expertise in product development, plastics injection molding, and device assembly in Southern China.