Danone to close two factories in Russia
The French company Danone, one of the largest producers of dairy products in the world, will close two factories in Russia. According to a statement made by company representatives to the newspapers Izvestia, the French company will close its plants in Tomsk and Cheboksary.
“After a company-wide reorganization, the Tomsk dairy plant will be closed. There will also be a consolidation of production facilities in Kemerovo and Krasnoyarsk. The Cheboksary dairy plant will also be closed and its manufacturing capacity will be managed by the facilities in Samara, Saransk and Kazan,” the company reported.
The Russian Division of the French company insisted that the reorganization will not affect production volumes. The main reasons for the reorganization are the serious technological deterioration of the plants, low profitability, and reduced sales due to the economic crisis in Russia.