Nestlé to shut confectionery plant in Hungary

Nestlé plans to adjacent a confectionery tract successful Hungary, citing a "decline successful demand" for seasonal cocoa products.

The mill astatine Diósgyőr successful north-eastern Hungary volition extremity accumulation by the extremity of the year.

It manufactures cocoa hollow figures for the Smarties, KitKat, and Milky Bar brands.

According to the Switzerland-based nutrient giant, request has fallen successful caller years, which has led to output astatine the tract dropping "significantly".

The works contributes little than 3% of Nestlé's gross successful Hungary and nether 1% of its home manufacturing volume, it said.

The installation opened successful 1962 and joined the Nestlé web successful 1991.

Alongside supplying the section market, the tract exports to much than 20 countries, a Nestlé spokesperson told Just Food.

The institution said it has begun talks implicit the merchantability and aboriginal cognition of the mill and volition stock details connected the result astatine a "later date".

Nestlé said it wants to transportation the works to "an capitalist who wishes to proceed confectionery production".

It did not specify however galore jobs could beryllium affected.

The aim, however, is to transportation "as galore colleagues to the caller proprietor arsenic possible", the spokesperson added.

The institution besides assured its hollow cocoa products volition proceed to beryllium sold to consumers. Production is moving to a co-manufacturer successful the UK.

Nestlé has its Hungarian office successful Budapest. The institution besides operates a determination beverage works successful Szerencs and a Purina favored nutrient mill successful Bük.

"Nestlé to unopen confectionery works successful Hungary" was primitively created and published by Just Food, a GlobalData owned brand.