After 140 years of activity, the Danone factory in Villefranche-sur-Saône (Rhône) will close its doors. The group announced on Tuesday the closure of its infant cereal production site, which employs 117 people, while committing to offering employment in France to each of its employees.
The closure project, announced this Tuesday morning to social partners and employees, is subject to an information and consultation process and envisaged for the end of July 2027, according to the group.
This historic Danone site has been producing infant cereals “for more than 140 years” under the Blédina or Phosphatine brands for the European and African markets, explains Danone in a press release.
Its activity has fallen sharply over the past twenty years (-50% in volumes produced since 2007). The cause, according to Danone, is “the structural decline of the European market, weighed down by the drop in the birth rate and the evolution of consumption patterns” (35% drop in volumes marketed by Danone over the last five years) and “a lack of competitiveness on the African market”.
A job offered to 117 employees
“Despite all the efforts and investments made by the company and the continued commitment of all our employees, we are forced to consider closing the site,” declared its director Timothée Coppéré, quoted in the press release.
“Nearly 134 million euros” have been invested in the Villefranche factory over the last ten years, reports Danone, including 50 million to modernize it and 84 million “to compensate for losses in activity and volumes through internal subsidies”. The site is currently operating at “less than half its capacity”.
The group makes two commitments to social support for employees: “offering a job in France” to each of the staff members concerned, favoring internal mobility in the Lyon region and Auvergne – Rhône-Alpes, and “allowing each employee to train and develop their skills, in line with their needs and aspirations, to prepare for their future”.
Search for buyers
The Minister Delegate for Industry Sébastien Martin said he “takes serious note” of this announcement.
“The government will be extremely vigilant in ensuring that Danone respects its obligations towards its employees, and in implementing quality support measures (reclassification, professional retraining), in conjunction with social partners and state services,” he reacted.
The ministry will also be “very attentive to the implementation of a revitalization agreement and the establishment of a serious process of searching for buyers”.