Nestlé has announced plans to shut down its confectionery manufacturing facility located in Diósgyőr, Hungary, due to a noted “decline in demand” for seasonal chocolate offerings. The production at this site is set to conclude by the end of the year.
This factory primarily produces chocolate hollow figures for popular brands such as Smarties, KitKat, and Milky Bar. According to the Swiss food corporation, demand for these products has decreased in recent years, resulting in a “significant” reduction in output at the Diósgyőr facility.
The plant represents less than 3% of Nestlé’s total revenue in Hungary and contributes under 1% to its local manufacturing volume. Originally opened in 1962, the facility became part of Nestlé in 1991. In addition to serving the Hungarian market, the plant exports products to over 20 different countries, as noted by a Nestlé spokesperson in a statement to Just Food.
Nestlé has initiated discussions regarding the potential sale and ongoing operations of the facility, promising to provide updates on the situation in the future. The company expressed interest in transferring the site to “an investor who wishes to continue confectionery production.” However, it has not disclosed the specific number of jobs that may be impacted.
The aim, according to the spokesperson, is to ensure that “as many colleagues as possible” can transition to the new owner. Nestlé reassured stakeholders that consumers will still have access to its hollow chocolate products, as production will move to a co-manufacturer in the UK.
Nestlé’s Hungarian headquarters is situated in Budapest, and the company also maintains a regional beverage production facility in Szerencs and a Purina pet food plant in Bük.
