As a result, 160 workers remaining at the plant will lose their jobs after the headcount had already been scaled down there from 340 since August.

The closure is due to falling orders in the European car industry. The company has been feeling the crunch since the second half of last year, which is why it stopped extending fixed-term contracts in August.

The workers were informed of the closure on Thursday afternoon, and now procedures will be launched to give them notice, according to Trobiš. Most of the workers left are on permanent contracts.

Boxmark Leather also cancelled the contract for the lease of the plant that is owned by Prevent Global, the car seat cover maker that is in receivership since August 2010.

Boxmark Leather has had the plant on lease since September 2010.

Trobiš said that the production at Boxmark's plant in Kidričevo would be kept at the present level, which means that all of 1450 workers there are keeping their jobs.

The official did not rule out the possibility of production resuming at Radlje if the conditions for business improved in the future.