France Tries to Block R&R Plant Closure
Yet at the same time R&R says it can't make a go of the French plant, it is said to be on the hu…Yet at the same time R&R says it can't make a go of the French plant, it is said to be on the hunt for more acquisition targets as it looks to consolidate its strength in the European market, its chief executive has told TheBusinessDesk.com.
James Lambert said the North Yorkshire, UK-headquartered business was continuing to investigate opportunities in countries including Belgium, France, Denmark and Germany. "There are also opportunities in Eastern Europe," said Lambert. R&R already has an operation in Poland.
R&R announced the Carcassonne closure in July. A small number of the 127 staff were to be offered jobs at R&R's other French plants and its facility in Poland. The company told just-food that the plant is no longer competitive on production costs. But following meetings with the plant's management, a representative of the French government said authorities would do all they can to maintain activity at the plant and, failing that, find a buyer.
"While the prefect's comments were welcome, he did not specify how the state will support us," a member of the plant works council told just-food August 10. "We want something concrete to take hope in." He claimed that R&R Ice Cream would have closed the plant on Aug. 25 if the works council had not contested the closure.
"We commissioned a consultancy to carry out an audit on the plant, which showed the plant was profitable," the works council rep said. No one from R&R was immediately available to comment on the prefect's involvement and the actions of the works council. The company had announced July 6 that the Carcassonne plant, which produces 24 million liters a year, would be put up for sale, due to poor sales and higher raw material costs, with production to be transferred to the other French plants in Plouedern, Vayres and Dange Saint-Romain.
