The Brazilian unit of troubled Italian food group Parmalat has said it has cut 120 jobs at a factory in central Brazil.

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Parmalat Brasil Industria de Alimentos said the job cuts were due to the transfer of milk production from a factory in Goias to two other facilities. The company said the transfer was planned before its Italian parent’s financial crisis, but company sources told Reuters that the move was a result of the current situation at Parmalat.


Parmalat Brasil said earlier this week that it was returning a recently acquired tomato processing plant to Anglo-Dutch consumer products group Unilever.


The company has also stopped production at a cookie plant in Sao Paulo state, reported Reuters.

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