Roshen to halt production at Russian factory
Ukranian confectionery company Roshen is to halt production at one of its facilities in Lipetsk, Russia, leaving around 700 jobs at risk.
The factory, which only manufactures caramel, will close by the end of April, a spokesperson for the company told Confectionery Production.
According to its website, Roshen produces around 320 confectionery products, including chocolate and jelly sweets, caramel, chocolate, biscuits, wafers, sponge cakes, swiss rolls and cakes. Production volumes reach 450,000 tons per year.
The company operates three facilities Ukraine, including one in Kiev and two production sites in Vinnitsa and Kremenchug, as well as two production sites in Lipetsk, Russia. Roshen also has the Klaipeda confectionery factory in Lithuania, Bonbonetti Choco Kft in Budapest, Hungary and a buttermilk plant, supplying the corporation plants with raw dairy products.
In a statement, the company said economic and political reasons were behind the decision. Roshen added that the arrest of the property of the Lipetsk confectionery factory by Russian authorities “made it impossible to sell the factory”.
Production at the Lipetsk confectionery factory started to fall in 2013, due in part to a ban by Rospotrebnadzor on imports of Roshen’s Ukrainian products to the Russian Federation and the “active discrediting activities” against the factory. As a result of the production decline, the factory has been conducting mass layoffs.
The remaining 700 staff have been informed about the decision to halt operations at the Lipetsk factory.