Declining consumer spend has forced Danone to respond with the announcement it is to close three European dairy sites – a move which sees 325 jobs axed.

The firm issued a statement saying sales in the region had been hit by a “lasting downturn” in the European economy since 2010.

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“The group’s Fresh Dairy Products division in Europe has seen overall business fall back, with local cases of surplus capacity,” it added.

Sites in Casale Cremasco, Italy; Hagenow, Germany; and Budapest, Hungary “all countries particularly hard hit by the fall in sales” would be closed when the project is fully implemented by mid-2015.

Danone has preciously indicated that its European dairy business is dragging down its group result and the company plans to generate more than EUR200m (US$275.86m) in cost savings in the region by year-end. 

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