Nestle S.A.NESN
▼ NegativeDemandrelevance
Declining demand for seasonal chocolate products forces plant closure.
Impact on stocks 1
Consumer Staples
Nestle S.A.Nestlé to close Hungarian confectionery plant by year-end
Corporate Action
Nestlé plans to close its confectionery factory in Diósgyőr, Hungary, by the end of the year, citing a decline in demand for seasonal chocolate products. The site, which opened in 1962 and joined Nestlé in 1991, produces hollow figures for the Smarties, KitKat, and Milky Bar brands and exports to more than 20 countries. It contributes less than 3% of Nestlé's revenue in Hungary and under 1% of its domestic manufacturing volume. The company has begun talks to sell the facility to an investor who wishes to continue confectionery production, aiming to transfer as many employees as possible to the new owner. Production of the hollow chocolate products will move to a co-manufacturer in the UK.
Nestle S.A.Declining demand for seasonal chocolate products forces plant closure.