Danone Plans Closure of Infant-Cereal Plant in France
Danone announced the closure of its Blédina infant-cereal production facility located in Villefranche-sur-Saône, Rhône department, France. This move will impact 117 employees at the site.
The factory produces the Blédine baby cereals and the Phosphatine line, which mainly serve markets in Europe and Africa. Phosphatine is an iron-fortified product aimed at helping reduce anemia among children in Africa.
Reasons for Closure
Danone explained that the plant has experienced a gradual decline in activity over more than ten years due to a shrinking European market and challenging conditions in Africa.
“This project comes as the site has been facing a slow decline in activity for more than a decade in a structurally declining market in Europe and a complex market environment in Africa,” Danone stated.
“Despite significant investment over the past ten years to support, transform and modernise the site, its economic future is no longer guaranteed.”
Next Steps
Employees were informed on November 4th and the company is starting a consultation process with worker representatives.
Summary
Danone’s decision to shut down the Blédina plant reflects ongoing market challenges despite efforts to modernize, affecting over a hundred jobs.
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