Sodiaal Announces Closure of Malestroit Facility as Part of Strategic Plan

Strategic Closure for Future Competitiveness

The French dairy cooperative Sodiaal has announced its decision to close its production facility in Malestroit, France, as part of a broad 'industrial master plan'. This strategic move involves transferring operations to Montauban-de-Bretagne, with the transition set for completion between 2028 and 2029. The decision aims to preserve the competitiveness of Sodiaal's Emmental cheese business amid intensifying market pressures.

Focus on Sustainable Employment

Sodiaal has stated that it is committed to transparency and ensuring that all employees affected by this move will receive individualized support to maintain their employability. Discussions are underway with the Entremont Alliance trade unions to establish a responsible employment management system, ensuring minimal disruption to its milk collection activities in Brittany.

Addressing Market Challenges

The cooperative's decision comes amid increasing competition in the Emmental market, with price pressures mounting due to new private label brands entering the market. To sustain its market position and value of milk collected, particularly in Brittany, Sodiaal is optimizing its industrial operations, moving production to more cost-effective locations.

Investments and Future Plans

Significant investments, estimated between €50 and €70 million, would be required to enhance the Malestroit site, yet these would offer limited improvements to its industrial performance. Instead, Sodiaal plans to invest €30 million in Montauban-de-Bretagne to absorb the production capacity from Malestroit. Despite the closure, Sodiaal will continue to invest in Malestroit until the transition is completed, with plans for €4-5 million in investments over the next three years.