French dairy major Danone is planning to shut down three of its plants in Europe, a move which will eliminate 325 jobs.
The decision comes amid declining fresh dairy sales in the continent. Although, European sales volumes are now showing signs of gradual improvement, the company's Fresh Dairy Products unit has seen overall business fall back, with local cases of surplus capacity, Danone said.
The planned plant closures at Casale Cremasco, Italy; Hagenow, Germany; and Budapest, Hungary, along with a gradual shift in production volumes to Belgium, Poland, Germany and France are expected allow the Fresh Dairy Products unit to improve its production capacity and competitive edge in Europe.
Total jobs to be eliminated include 100 in Italy, 70 in Germany and 155 in Hungary.
The company said it will take social measures identifying job solutions for all the affected employees. This move would be fully implemented by mid-2015.
Image: Danone's decision comes amid declining fresh dairy sales in the continent. Photo: courtesy of Alecsandro Andrade de Melo.
