The supervisory board of Panalpina Austria has decided to withdraw from the land transport business following the breakdown of sales negotiations with domestic and foreign companies.
The withdrawal affects Panalpina Landtransport, Vienna, and its subsidiaries in Graz, St Michael, Linz, Wels, Salzburg and Innsbruck.
The 570 people employed in land feeder services, warehousing and distribution have not been given notice, but company is looking for interested parties to hire the employees, a move described as co-operative and fair by trade unions.
In line with group strategy, Panalpina Austria will undertake an expansion of the air- and sea-freight divisions.
Panalpina Air & Ocean, Vienna, which employs a staff of 200 and has offices in Graz, Linz, Innsbruck, Salzburg and St Michael, will be headed by Johann Winzer.
Mr Winzer was formerly managing director responsible for the Panalpina offices in Munich, Nuremberg, Berlin, Dresden and Leipzig.