HUNGARY: Government vows to prevent closure of Danone subsidiary

The Hungarian Economic Minister has vowed to use all constitutional means available to keep domestic biscuit maker Gyori Keksz operational, after its French parent Danone revealed plans to close down the business. Minister Gyorgy Matolcsy commented: "We will not tolerate the closure of the 100 year old plant with long traditions." The government provided subsidies for investments in 1997 to Danone, and has pointed out that the French company has a legal obligation to maintain operation until at least the end of 2002.

April 20, 2001

The Hungarian Economic Minister has vowed to use all constitutional means available to keep domestic biscuit maker Gyori Keksz operational, after its French parent Danone revealed plans to close down the business.

Minister Gyorgy Matolcsy commented: “We will not tolerate the closure of the 100 year old plant with long traditions.” The government provided subsidies for investments in 1997 to Danone, and has pointed out that the French company has a legal obligation to maintain operation until at least the end of 2002.

Matolcsy was not clear on what measures could be taken, however a working groups has been set up to investigate Danone’s plans and meet with the company’s management on Thursday.