French dairy giant Danone has confirmed that it has suspended yoghurt production at its Shanghai plant in China.
A spokesperson for the company today (9 December) said Danone has decided to change its strategy in China.
Danone, which has two manufacturing sites in China, said industrial operations will continue at its Beijing factory, to build its Bio brand but adjustments for its Shanghai factory will take place.
“At present our Shanghai factory’s operation is suspended. We are making evaluation now to decide its future operation strategy,” Danone said.
“China is a key strategic market for Danone, and we are committed to our long-term success in this market. Danone reiterates its commitment to sustainable development in China and its mission to bring health through food to as many people as possible.”
Danone said the suspension will effect some of its employees but could not disclose the exact number.
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“We will ensure the interests of all affected by this decision are protected according to the requirements of Chinese law and Danone policy.”