Mondelez to shut down biscuit plant in France by 2026

Mondelez International, the US-based snacks giant, has announced its plan to close its biscuit factory in Château-Thierry, France, by the end of 2025, as part of its strategy to improve its competitiveness and efficiency. The decision will affect 61 employees, who will be offered relocation or severance packages.

Mondelez
Mondelez

Biscuit factory closure: a result of high production costs and low demand

The biscuit factory in Château-Thierry, which produces brands such as Mikado, Petit Ecolier, Granola, Pépito, and Pim’s, has been operating since 1972, and is one of the oldest and smallest plants in Mondelez’s European network. However, the plant has been facing several challenges in recent years, such as high production costs, low demand, and outdated infrastructure and equipment.

According to Mondelez, the production cost at Château-Thierry is twice as high as at its other plants in Europe, and the plant has no capacity to accommodate new production lines or technologies. The demand for the products made at the plant has also been declining, due to changing consumer preferences and increased competition.

Mondelez said that it had explored various options to improve the situation at the plant, such as investing in modernization, diversifying the product portfolio, and outsourcing some production to external partners. However, none of these options proved to be viable or sustainable, and the company decided to close the plant as a last resort.

Biscuit production to be transferred to other Mondelez plants in France and Europe

Mondelez said that it will gradually phase out the production at Château-Thierry over the next two years, and transfer it to other plants in France and Europe. The company said that it will maintain the same overall volume of production in France, and that it will continue to invest in its other plants in the country.

The main beneficiary of the production transfer will be the plant in La Haye-Fouassière, in western France, which will receive a €10 million ($10.8 million) investment from Mondelez to install a new production line and a new packaging line. The plant will also take over the production of the Figolu brand, which is currently outsourced to a partner in the UK.

The other plants that will receive some of the production from Château-Thierry are the plants in Clamart, near Paris, and in Opava, in the Czech Republic. Mondelez said that these plants have more modern and efficient facilities, and that they can offer more innovation and variety to the consumers.

Mondelez to support the affected employees and the local community

Mondelez said that it is aware of the social and economic impact of its decision to close the biscuit factory in Château-Thierry, and that it will support the affected employees and the local community. The company said that it will offer relocation opportunities to the employees who wish to continue working for Mondelez, and that it will provide severance packages and outplacement services to those who choose to leave the company.

The company also said that it will work with the local authorities and the social partners to find a suitable buyer for the plant, and that it will contribute to the development of the local economy and employment. The company said that it will maintain a dialogue with all the stakeholders, and that it will respect the legal and social procedures.

Mondelez said that its decision to close the biscuit factory in Château-Thierry is part of its global strategy to optimize its manufacturing footprint, and to ensure its long-term competitiveness and growth. The company said that France remains a strategic market for the company, and that it is committed to offering high-quality products and services to its customers and consumers.

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