Lactalis Nestle, the fresh dairy venture between French dairy giant Lactalis and Nestle, the world’s largest food maker is to close a factory near the Spanish city of Barcelona.

The company confirmed the closure of the Vilamoura site to just-food today (10 September). Lactalis Nestle is moving the site’s production to its other facility in Spain, in the central town of Guadalajara.

Around 172 workers at the Vilamoura site will be affected by the move, but a spokesman for Lactalis Nestle said the company was giving staff the opportunity to transfer to Guadalajara.

The spokesman said space restrictions at the Vilamoura facility meant it could not be expanded. The capacity of the Guadalajara site will increase to 200,000 tonnes.

The spokesman insisted Lactalis Nestle wanted to “optimise” its production footprint in Spain and continue to grow the business. He added that the company could also more effectively serve consumers in Portugal from the Guadalajara site than from the plant near Barcelona in Spain’s north-east.

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