French food group Danone wants to close down Italian, German and Hungarian dairy factories by mid-2015 as the European demand for fresh dairy has lowered.
Sales have dropped quite strongly
Sales of Danone's fresh dairy drinks have dropped to the lowest level in 10 years' time. For example, Hungarian sales have dropped 20 % from 2011 to 2013 as customers reacted badly to higher prices and the introduction of more expensive products.
Danone had already stated in April that these sales would also be lower in the second quarter, but would pick up again in the third quarter.
Excess output forces production changes
As Danone has excess output, it wants to change its production process and three factories (Casale Cremasco, Hagenow, Budapest) will gradually close down and transfer their activities to Belgium, France, Germany and Poland.
325 people will lose their job in this restructuring process. Danone employs 9,000 people in its European fresh-focused factories.