FRANCE – World’s giant snack company, Mondelez International has announced closure of its biscuit plant in France by the end of 2025 to “safeguard its competitiveness.”
The move would lead to loss of 61 jobs at the plant by mid-2026.
According to the company, production at the Château-Thierry site in Aisne, northern France will be phased out over the next two years.
In a statement, Mondelez described the facility as “very old and would require substantial investment over the next few years to modernize its infrastructure and equipment”.
Mondelez added that the Château-Thierry site has no capacity for new production lines and its current production rate is lagging behind its other sites.
“Despite the measures taken in recent years to optimise production, production at Château-Thierry costs on average twice as much as other Mondelez International sites in the rest of Europe, with no prospect of improvement,” a statement read.
In a strategic plan, the production activities will be transferred over to other group sites, mainly La Haye-Fouassière in Loire-Atlantique in western France, where 27 new jobs will be created.
Mondelez to inject US$10.8M investment in La Haye-Fouassière site
Meanwhile, Mondelez is set to bolster the La Haye-Fouassière site, which produces dry biscuits, with a €10m (US$10.8m) investment in a new production line and a new packaging line
Moreover, production of the Figolu biscuit brand – which is carried out by an external partner in the UK – will be relocated to La Haye-Fouassière.
“This project confirms that France is a strategic country for the group, despite the difficulties we are facing,” Roberto Gambaccini, industrial director for Mondelez’s France business, said.
According to him, despite the measures taken in recent years to optimize production at Château-Thierry, it still costs on average twice as much as at other sites in the rest of Europe, with no prospect of improvement.
The Milka chocolate maker stated it will maintain the same overall volume of production in France with the reorganization.
“I’m well aware of how difficult this project is for the employees at Château-Thierry,” Gambaccini added.
He, however, assured that the management has proposed to the social partners that they conclude a method agreement, which would define the means and framework of the information-consultation procedure in order to guarantee open, transparent and respectful social dialogue.
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