Danone Close Factory In Ukraine

Danone, A giant dairy company in France, has its dairy subsidiaries worldwide, with 18 dairy companies in the United States alone. It also has two large dairy processing Factories in Ukraine.

Ukraine & Russia War

For this reason, when the war between Ukraine and Russia broke out, many foreign companies in Ukraine were strongly affected, especially large dairy companies like Danone were hit the hardest. Therefore, the war must also involve the two processing Factories in Ukraine. Danone had to announce that one of its two factories in Ukraine would be closed to reduce unnecessary consumption. The reason for the factory’s closing is that it will be challenging to export the products of the plant because of the war, and the productivity of the workers will be affected by the war, resulting in a decrease in labor productivity. Another reason Danone closed only one factory instead of two is that it can give its employees in Ukraine a place to continue working.

Announcement From Danone

Not only that, Danone said that it would suspend its investments in Russian companies. At the same time, since the second processing factory will be operating normally, Danone guarantees that during the war Danone will continue to supply all dairy products to Ukraine and ensure the food supply as usual.

During the war, Danone closed only one plant and another plant continued to produce dairy products for Ukraine, which affected Danone’s productivity in terms of decision making but made a positive and positive communication in terms of brand image, for which more consumers know the brand. Because Danone is a large global dairy company, its response to this worldwide conflict will have a different effect on its dairy companies around the world.