French milk products group Yoplait is closing down its plant at Ressons-sur-Matz, in northern France, which employs 225 staff.
Yoplait, which is 50%-owned by co-operative group Sodiaal, said the closure is a result of over-capacity itself due to a decline in demand.
The Ressons-sur-Matz plant, one of four operated by Yoplait in France, produces around 80,000 tonnes of yoghurt annually bound for the French and UK markets.
Four years ago, Yoplait had invested an estimated EUR30m (US$37.73m) in new production equipment at its plants which helped check the firm's decline and stabilise sales. But the market had since moved into a downward cycle with prices falling as well as volumes, the company added.    
Meanwhile, Yoplait's sister company, Candia, is to close its heavy loss-making plant at Ressons-sur-Matz, which produces bottled and cartoned milk, with the loss of 85 jobs.