Tetra Pak is considering closing its manufacturing plant in Dijon, France, Euwid reports.
The company has announced that it had started an information and consultation process which could eventually resulting in discontinuation of operations of its subsidiary Papeteries de Dijon and indefinitely idling of the site. Such a move would impact 207 employees.
The reason behind the move is falling demand and rising costs in recent years.
Production at the site declined by 15 per cent between 2019 and 2023, resulting in under-utilization of capacity at the beverage carton plant, which has fallen from 71% to 65%. At the same time, rising raw material and energy costs contributed to a 24.4% increase in production costs over this period.
Despite significant investments "in operational efficiency" and increased export volumes, "the situation is no longer viable," Tetra Pak emphasizes. According to a spokesperson for the company, production would be halted in September 2025.