Nestlè to close centenary factory in Austria within 2018

Nestlé Austria has announced plans to close its production facility in Linz by March 2018, as part of an 'ongoing evaluation' of its portfolio.

The factory, which has been operating for nearly 140 years with an output of roughly 6,000 tonnes of food products, has been effected by changing consumer trends which have affected demand. The factory in Linz specialised in products for its business to business division.

On 7 March, the management informed the plant's 127 employees of the decision, and is collaborating with the Works Council and employee representatives to find 'socially acceptable solutions'.

"Our intention was to communicate our intention very early on so that we could take the time to develop individual solutions for our employees," said Fabrice Favero, CEO of Nestlé Österreich GmbH.

In the statement, the company highlighted that its position in the country remains strong, with a workforce of around 1,000 people in 16 locations throughout Austria.