SPAIN – Danone, French dairy giant, has confirmed its plans to shut down its dairy and plant-based yogurts facility located in Parets del Vallès, north of Barcelona, Spain.

In a statement the company revealed that it has initiated negotiations with the legal representation of the workers regarding the potential cessation of activity at the plant.

The closure is expected to impact around 157 workers, according to reports from Spanish news agency Europa Press.

Catalonian trade union Comissió Obrera Nacional de Catalunya (CCOO CAT) has strongly rejected the closure announcement, urging Danone to reconsider its decision.

Meanwhile, the union is calling for the development of an industrial plan that ensures the continuity of activity and jobs at the Vallès plant.

Danone justified its decision as part of a local rationalization process aimed at strengthening brand competitiveness and achieving industrial efficiency.

The company expressed its commitment to working with the legal representation of the workers to find the best possible solutions and minimize the impact on employees.

Danone Spain stated that it would collaborate to reach an agreement satisfying the interests of all parties and make every effort to mitigate the consequences of the announcement.

Additionally, the company emphasized its dedication to boosting reindustrialization in the area to facilitate industrial continuity and minimize the labor impact.

A Reports from the Europa Press suggested that Danone has already started searching for a new buyer for the plant.

In 2021, the company invested around €12 million (US$13 million) in installing a new plant-based production line at the Catalonian site, where it produced both dairy and dairy-alternative products in the same space.

The closure announcement comes amid broader industry changes and adjustments.

As companies navigate market dynamics and consumer preferences, they often reassess their manufacturing and production facilities to align with evolving business strategies.

The impact of this decision on the affected employees and the local community will be a key aspect to monitor as the company moves forward with its plans.

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