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Danone Plans to Close Villefranche Baby-Cereal Plant by 2027 After Years of Falling Demand

Employees receive promises of roles elsewhere in France during consultations.

Overview

  • Danone informed staff and social partners on 4 November that the closure is proposed and subject to an information-and-consultation process, with shutdown targeted for end-July 2027.
  • One hundred seventeen jobs are affected, with the company committing to offer a position in France to each employee as well as training and reconversion options, prioritizing internal mobility in Auvergne-Rhône-Alpes.
  • Output has fallen about 50% since 2007 and 35% in the past five years, and the factory now operates at less than half of its capacity.
  • Danone says it invested nearly €134 million over the past decade, including €50 million to modernize the site and €84 million to offset declining volumes, but volumes kept sliding.
  • Industry minister Sébastien Martin says the government will closely monitor worker protections, push for a revitalization convention, and support a serious search for potential buyers.