The construction of Groupe Danone’s global food research centre in Palaiseau, near Paris, has been halted as the food giant feels the backlash of its decision to restructure its biscuit operations.
Danone said it has halted construction of the centre after the Ile-de-France regional government decided it would delay release of a Ffr4m subsidy to fund to the project. This move is a direct result of Danone’s plan to cut 400 jobs by closing its LU biscuit factory at Ris-Orangis in the region.
Jean-Paul Huchon, the socialist president of the Ile-de-France region, said he wanted to meet the group’s management before releasing the money.
Huchon said it is unacceptable that “a company known throughout the world for its social management has been able to consider elected officials, including yours truly, as a child. Nothing was explained to us beforehand.”