Danone has announced the closure of its factory located outside Barcelona, putting 157 jobs at risk. The multinational food products company, which was founded in Barcelona over a century ago, revealed its plans to shut down its only factory in metropolitan Barcelona to employees on Friday. The closure has been confirmed by the union Comisiones Obreras (CCOO), which is against the decision.
According to union sources, the decline in sales of products manufactured at the plant is the main reason behind the closure. However, the company claims that it is committed to promoting the reindustrialization of the factory and minimizing the impact on employment. The factory in Parets del Vallès, situated about 20 kilometers north of Barcelona, produces dairy and milk-substitute products such as Oikos, Alpro, and Vitalínea. Danone España recently had four factories in Spain but now only has two remaining, one near Madrid and another in Valencia, in addition to the soon-to-be-closed factory in Parets del Vallès.
The union sources at CCOO expressed their lack of surprise at the closure, citing the drop in production volumes and the relocation policy. However, they are concerned about the working conditions that employees may face in a potential new company. The union hopes to replicate the example of Salas, a municipality in Asturias, where 153 workers were laid off in 2021 but were later given the opportunity to work for Royal A-Ware, a dairy product company taking over the plant.
Danone España has stated that it will initiate a dialogue process with the workers’ legal representation to explore options and minimize the impact on employees. The company aims to promote reindustrialization and ensure the continuity of industrial activities in the area. Union representatives are hopeful that the production from Parets del Vallès will be transferred to the remaining factories in Tres Cantos and Aldaia.
This closure is part of Danone’s strategy of relocating production to other plants capable of absorbing the declining production volumes without the need for additional hiring. Union sources highlight that despite the decrease in production, Danone has managed to increase turnover by raising prices and invoicing more with lower levels of production and sales.
In 2022, Danone España’s turnover reached €842.97 million, representing a 9.6% increase compared to the previous year. However, their profits declined by 36.8% during the same period.
This closure follows the sale of Danone’s factory in Salas, Asturias in 2023, where 153 workers were laid off between 2021 and 2022. The layoff process significantly impacted Danone’s profits in 2021, which were reduced by 80%, and its income decreased by almost 3% to €769 million.
The closure of the Parets del Vallès factory will have a significant impact on the employees and the local community. The priority now is to find solutions to mitigate the employment consequences and ensure the reindustrialization of the area. Danone España will continue to work with the workers’ legal representation to explore alternative options and minimize the impact on the employees involved.
