Lactalis rationalising manufacturing footprint in Spain

Lactalis rationalising manufacturing footprint in Spain

Lactalis has pushed ahead with the planned closure of a Spanish production facility that manufactures the Lauki brand. 

The company, which had agreed to delay the closure of the site in Valladolid until the beginning of October, has now shuttered the plant, according to local reports. 

The union representing workers at the facility, the Confederación Sindical de Comisiones Obreras, had asked Lactalis to postpone the closure until a buyer for the site could be found. In June, workers ratified a deal providing "advantageous" conditions for staff if a buyer cannot be found, the CCOO union said. Details of the severance package were not provided but it was confirmed that employees at the facility will be offered the chance to apply for 87 roles at other Lactalis plants in Spain.

Officials for French dairy giant Lactalis did not respond to requests for comment. 

The facility in Valladolid produces products under the Lauki brand. When Lactalis initially announced its plans to shut the factory in April, the company said the Lauki dairy brand was suffering declining sales. Activity at the factory has "declined significantly" in recent years, affecting its competitiveness, Lactalis added. 

The French dairy giant said the decision to close the plant was part of "a process of rationalisation" to achieve improve efficiency. It is planning on reducing capacity in Spain and concentrating on growing sales volumes "in order to ensure the continuity of brands, especially Lauki".