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Danone Closes 3 European Plants

Paris-based Danone announced plans to close its Casale Cremasco, Italy; Hagenow, Germany; and Budapest, Hungary, facilities, as a result of a down European economy and decline in consumer spending.

The planned closure of these three plants and a gradual shift in production volumes to Belgium, Poland, Germany and France should allow the fresh dairy products division to improve its production capacity and competitive edge in the European market.

This plan would lead to the suppression of 100 positions in Italy, 70 in Germany and 155 in Hungary. Working closely with works council representatives, Danone intends to take social measures identifying job solutions for each of the employees who might be affected. This project would be fully implemented by mid-2015.

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