Danone's French biscuit-making and cereal products arm, LU France, has signed a lease agreement with distribution facilities and services provider ProLogis to occupy two warehouses near Paris and Lyon totalling almost 63,000 sq.m.

LU France supply chain director, David Boulanger, said leasing "the latest-generation distribution facilities in two strategic markets" were part of a company move to optimize its logistics network in France.

One of the facilities is located at Isle d'Abeau, 12 miles from Lyon and with motorway connections to Paris, Marseille, Milan and Barcelona. The other is situated approximately 20 mile south of Paris in Moissy-Cramayel.

LU France is expected to occupy both facilities by the third quarter of 2005.