The multinational food products corporation Danone has permanently shut down its dairy product production capacities in Hungary, causing the loss of 139 jobs. Although the company’s products will remain available in shops across Hungary, they will be produced in other European units.
The company’s Budapest-based subsidiary has ceased production but cultured dairy products such as sour cream, kefir, unflavoured and fruit yoghurts and milk-based desserts will remain available in Hungary and Danone Kft. will continue to be the group’s regional base. Over the past year, Hungarian production capacities have gradually been relocatd to other European plants after the company announced last year that it is shutting down several European production units, due to low levels of capacity exploitation and decreasing demand for dairy products. The group’s sales in Hungary dropped by 20 per cent between 2011 and 2013.
The company is assisting its former employees to find new jobs and almost 80 per cent of workers have already succeeded in doing so. Danone has also found new acquirers for its milk suppliers, having previously buyed 25-30 million litres of milk from around ten permanent suppliers.