Spanish chocolate maker Natra has shelved plans to transfer its French production from a plant in St Etienne to a new facility in the city.
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Natra said the decision was the result of poor market conditions for its chocolate bar business.
A company official said “the slow recovery of consumption following the economic crisis, together with high raw material prices and strong competition in the sector” was affecting the division. The official added: “These factors made it advisable to stop any large-scale investment project.”
Natra’s French unit had agreed with local authorities to sell its existing site and build a plant elsewhere in the city. Investment was estimated at EUR15-18m.
“The existing production site still has enough spare capacity available to meet current demand from customers and will also allow us to analyse when the time is right for further development,” the official added.
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By GlobalDataNatraZahor France, which produces own-label chocolate bars, posted turnover of EUR58.7m in 2009, down 23% on 2008.
The company’s net income was EUR3.8m in 2009, boosted by a land sale. In 2008, NatraZahor reported a net loss of EUR1.1m.
