Danone announces intention to close factory with 157 workers

French multinational Danone announced plans on Friday to close its factory in Parets del Vallès, located just north of Barcelona, to “streamline” activity and “gain efficiency.” 

The closure will affect 157 workers at the factory.

The company has agreed to start a process of dialogue in which the re-industrialization of the factory is on the table. Meanwhile, the unions have rejected the proposal and instead asked Danone to improve its plan.

The decision to close the factory has been taken “after a long period of reflection and analysis,” according to the company, which promises to “promote reindustrialization to maintain the industrial continuity of the area and minimize the impact on employment.”

Danone also emphasized that Spain was a “strategic market” and stressed that it would maintain its “commitment” to keep it that way.

Unions expect demonstrations

Demonstrations to stop the closure are expected, according to the unions, who received the news at lunchtime on Friday. They are in meetings with Danone representatives to learn all the details, union sources told the Catalan News Agency (ACN).

In a statement, the union CCOO has “categorically” rejected the closure and urged the multinational to “reverse course” and instead sit down for negotiations with the workers to ensure that jobs are maintained.

Reactions of surprise and support 

Politicians have reacted to news of the possible closure with surprise and support.

The mayor of Parets del Vallès, Francesc Juzgado, told the Catalan News Agency (ACN) that he was surprised by the news, adding that Danone was “not aware of the collateral damage” of the closure, and that 60% of the workers are from Parets del Vallès. 

"Not only are 157 workers directly affected, but an entire industrial network of suppliers and services," Juzgado said.

The Catalan government stated that it regrets the decision of the French multinational and expressed support to the workers. It will meet with Danone “in the coming days” to ensure the best possible outcome from the negotiations.  

Meanwhile, the Spanish Ministry of Industry said they will “get in touch with the affected workers” and follow the situation to see what the reindustrialization plans look like. 

40 years of history 

Almost a year ago, Danone celebrated the 40th anniversary of the factory in Parets del Vallès and announced that it would invest €6.7 million in the digitalization of the factory.  

At the time Danone said the factory was “strategic” and a “motor for change” where products like Actimel and Danacol were manufactured, as well as being the first factory in Europe to produce both dairy and non-dairy alternatives.   

Last year, the factory produced 132 products, both dairy and non-dairy. It exports more than 20% of its production to Portugal, the United Kingdom, and Ireland.