Danone has announced the closure of three European dairy plants

Danone has announced the closure of three European dairy plants

Declining consumer spend has forced Danone to respond with the announcement it is to close three European dairy sites - a move which sees 325 jobs axed.

The firm issued a statement saying sales in the region had been hit by a "lasting downturn" in the European economy since 2010.

"The group's Fresh Dairy Products division in Europe has seen overall business fall back, with local cases of surplus capacity," it added.

Sites in Casale Cremasco, Italy; Hagenow, Germany; and Budapest, Hungary "all countries particularly hard hit by the fall in sales" would be closed when the project is fully implemented by mid-2015.

Danone has preciously indicated that its European dairy business is dragging down its group result and the company plans to generate more than EUR200m (US$275.86m) in cost savings in the region by year-end