Media: Danone in Russia closes two plants

Media: Danone in Russia closes two plants

The company explains the necessity of the closure of enterprises in Tomsk and Cheboksary their low profitability and assures that the plants will receive significant compensation.

MOSCOW, 26 Dec. French group Danone has decided to close two factories in Tomsk and Cheboksary, write “Izvestia”.

According to the company, reorganization Tomsk dairy plant will lead to consolidation of enterprises in Kemerovo, and Krasnoyarsk, and the relocation of the Cheboksary city dairy plant will strengthen the company in Samara, Saransk and Kazan. The main reason for this decision Danone calls the technological deterioration of plants, their low profitability and declining sales making it virtually impossible more investment to meet the new quality standards.

The company has assured that all employees will be compensated, “significantly in excess” of applicable labor and employment laws.

Last year Danone was closed JSC “Danone-Volga” in Togliatti, producing 150 tons of products per day, and dairy factory “Novosibirsk” with the capacity of 60 tons per day and the plant in Smolensk with a capacity of 130 tons per day, the newspaper reminds.

In early 2015, the company projected a decline in revenue growth amid deflationary pressure in Europe.

In Danone in Russia has 20 factories, which manufacture products under the brands Danone, “ACTIVIA”, Actimel, “Rastishka”, “Danissimo”, “Prostokvashino”, “Bio Balance”, “Relevant”, “Smeshariki”, “Subject” and others. The company employs around 14 thousand employees. According to its own data, the Danone group is the largest producer of dairy products in Russia.