Ardo rejects government aid, pushing frozen-vegetable plant towards closure
Sunday 11th October 2026 on 16:15 in
Austria
Belgian group Ardo has formally rejected a government and state aid package to keep its frozen-vegetable plant in Groß-Enzersdorf operating, making closure appear unavoidable, ORF reported.
In a letter to the federal government, Ardo said it did not believe public support, whether direct or indirect, could turn a structurally unprofitable operation into a sustainable long-term business. The company also cited legal and financial risks that it said would conflict with its business principles.
Ardo said a sale of the plant was not a realistic option and that it would proceed with the closure. Its top priority, the company said, was to prepare a fair social plan for employees.
Keeping the plant’s current operations going would require an investment of 112 million euros, Ardo said. Focusing on spinach would require 66 million euros. The company said neither option was financially feasible.
Ardo acknowledged the efforts of the federal and state governments, which had offered support. But it said the Groß-Enzersdorf plant, in the Gänserndorf district, had recorded average annual losses of five million euros since 2023. Ardo said it had invested about 50 million euros in the plant since taking it over in 2008.
The company said the plant was significantly less competitive than comparable production facilities elsewhere in Europe, citing higher energy, labour and raw-material costs in Austria.
Meanwhile, talks are under way about maintaining domestic production. Media reports have suggested that vegetable processor efko, based in Eferding, could work with family business Schneider’s Gemüseland and the Frozen Vegetables Producer Organisation, ETG, to establish new production in Austria.
Efko said on Sunday that whether, and in what form, it would take part in a possible solution for frozen-food processing remained open. Managing director Thomas Krahofer said the aim was to ensure vegetables and fruit could continue to be grown, processed and bought in Austria.