Danone plans to close its Blédina infant-cereal production site in its domestic market of France, a decision that will affect 117 staff.
Located in Villefranche-sur-Saône within the Rhône department, the factory produces the baby cereals brand Blédine, along with the Phosphatine line, the dairy giant confirmed in a statement to Just Food.
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Employees at the plant were informed yesterday (4 November) ahead of a consultation process with worker representatives.
Danone said the Bledine and Phosphatine products are mainly sold to markets in Europe and Africa.
Phosphatine is an iron-fortified brand targeted at children in Africa to help tackle anaemia.
“This project comes as the site has been facing a slow decline in activity for more than a decade in a structurally declining market in Europe and a complex market environment in Africa,” Danone explained in the statement.
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By GlobalData“Despite significant investment over the past ten years to support, transform and modernise the site, its economic future is no longer guaranteed.”
Production carried out at the Blédina factory is likely to move to Danone’s facility in Opole, Poland, the company said, emphasising the group business will continue to produce infant cereal.
Affected employees will be offered alternative positions in France, and where possible within the vicinity of the Blédina plant in the Auvergne-Rhône-Alpes region, Danone said.
“The management’s top priority is to find suitable and personalised solutions for each employee affected by the project, in line with their aspirations,” according to the statement provided.
Other “social support” will be offered, including training programmes through the “creation of a career transition campus”, Danone said, adding that discussions over those opportunities would take place with the employee representatives.
“Danone will continue to invest in its industrial facilities and develop employment in France, particularly in the Auvergne-Rhône-Alpes region, which is a strategic priority for the group,” the statement read.
Earlier this year, Danone announced the planned closure of another facility but in Germany, producing dairy products, desserts and high-protein puddings.
The site Ochsenfurt was lined up for closure next year, affecting 230 jobs.
Meanwhile, Danone issued its latest financial figures last month, reporting third quarter like-for-like sales grew 4.8% to €6.88bn ($8bn). Europe registered LFL sales growth of 2.6% with volume/mix up 2.1%.
