SPAIN: Orangina Schweppes halts production at Valladolid
Orangina Schweppes will move production to Toledo, central Spain
Suntory-owned Orangina Schweppes has said that it will stop production at its Valladolid plant in Spain.
A spokesperson for the company told just-drinks today (27 April) that production will move to another facility in Toledo, northern Spain. No job cuts will be made, the firm said, but early retirements will be taken.
"The motivation behind this decision is the need to improve costs in the returnable bottle format, which the Valladolid plant produces," the spokesperson said. This format, the spokesperson added, "has suffered a significant drop in sales volumes, especially since the beginning of the crisis which has hit the catering channel more than anything else.
"Transferring manufacture will enable the company to leverage the economies of scale offered by Toledo to obtain more competitive costs," she said.
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