Danone closes factories in Russia


One of the largest dairy producers – the French company Danone – will close two factories in Russia – reports “Izvestia” referring to representatives of the company.

According to the newspaper, the French company will close its factories in Tomsk and Cheboksary.

“The reorganization will lead to the termination of the Tomsk dairy factory with the further consolidation of production facilities at factories in Kemerovo and Krasnoyarsk, and of Cheboksary dairy factory, with a gradual transfer of production to Samara, Saransk and Kazan” – said the company.

The Russian division of the French company assured that the business reorganization will not affect the volume of production. A key reason for the reorganization of the business is a serious deterioration of the factories, their low profitability, and falling sales due to the economic crisis in Russia.

Source: Gazeta.Ru


Image: Paxá Supermercado, CC BY 2.0