Nestl\u00e9 plans to close a confectionery site in Hungary, citing a “decline in demand” for seasonal chocolate products. <\/p>\n
The factory at Di\u00f3sgy\u0151r in north-eastern Hungary will end production by the end of the year. <\/p>\n
It manufactures chocolate hollow figures for the Smarties, KitKat, and Milky Bar brands. <\/p>\n
According to the Switzerland-based food giant, demand has fallen in recent years, which has led to output at the site dropping “significantly”. <\/p>\n
The plant contributes less than 3% of Nestl\u00e9’s revenue in Hungary and under 1% of its domestic manufacturing volume, it said. <\/p>\n
The facility opened in 1962 and joined the Nestl\u00e9 network in 1991. <\/p>\n
Alongside supplying the local market, the site exports to more than 20 countries, a Nestl\u00e9 spokesperson told Just Food. <\/p>\n
The company said it has begun talks over the sale and future operation of the factory and will share details on the outcome at a “later date”. <\/p>\n
Nestl\u00e9 said it wants to transfer the plant to “an investor who wishes to continue confectionery production”. <\/p>\n
It did not specify how many jobs could be affected. <\/p>\n
The aim, however, is to transfer “as many colleagues to the new owner as possible”, the spokesperson added. <\/p>\n
The company also assured its hollow chocolate products will continue to be sold to consumers. Production is moving to a co-manufacturer in the UK. <\/p>\n
Nestl\u00e9 has its Hungarian headquarters in Budapest. The company also operates a regional beverage plant in Szerencs and a Purina pet food factory in B\u00fck. <\/p>\n