Mondelez International is to close two production facilities in Spain, putting around 152 jobs at risk.
The confectionery giant said production will stop at the plants at Dos Hermanas in Seville and Ateca in Zaragoza, and that it has initiated talks with the workers affected.
The Dos Hermanas plant produces roast, ground coffee and employs 45 workers, while the Ateca plant produces candy and chocolate bars, employing 107 staff.
Mondelez said the decision to close the confectionery plant in Ateca was taken due to a fall in output of candy and chocolate bars at the factory, which is only using 29% of its production capacity.
“Both facilities suffer from excess production capacity, which makes it totally unfeasible to maintain production,” the company said. “For this reason, Mondelez International has been obliged to take this measure as an act of responsibility.”
Mondelez said production will be moved to other plants owned by the group in Spain and Europe.
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By GlobalData“The management team has started contacting workers and legal representatives, with the aim of engaging in talks and negotiations that enable it to reach an agreement that minimises, as far as possible, the impact that this decision might have,” the company said.