French cold meats firm Aoste, part of Spain's Campofrio Food Group, is planning to close one of its plants in south-west France, according to union sources.

The plant, situated in Boffres, cuts and packages ham, dry sausage and other charcuterie products which are manufactured at another Aoste plant located nearby. Around 70 employees work at the Boffres facility.

Unions sources said local management had indicated to the plant's works commitee that it would be shut down in September, adding that staff had been working overtime hours as recently as three months ago. A senior Aoste executive has confirmed the closure to the mayor of Boffres.

Contacted by just-food, an Aoste spokesman declined to comment on the closure claims ahead of a group level works commitee meeting tomorrow (6 April).

In 2011, Campofrio made losses of over EUR54m.

Last month, it announced it was selling the majority of its stake in French cooked meats unit Jean Caby to Foxlease Food.