LU Polska hit by drop in sales and imports from Czech Danone

Biscuit producer LU Polska, which is owned by the French Danone concern, plans to close one of its two production plants, while Rzeczpospolita has learnt that Czech Danone factories have increased their exports to Poland with Polish packaging. According to Alain Locqueraux, General Director of LU Polska, the plant in Jarosław is to be closed in early 2004, while its production equipment will be transferred to Płońsk due to a low use of production capacity and a drop in sales. By the end of June, the profits of both plants were almost down to zero and thanks to restructuring, it should reach a level of 3% on sales of zł. 250 million. Over the previous years, profits amounted to 9-10%. "Maintaining two plants is more expensive than having one factory. After closing one of them, there will be a chance for recording profits and maintaining employment," thinks Bogna Sikorska, an independent analyst. Trade unions from Jarosław have a plan to save their jobs and factory, which is being looked upon favorably by an unnamed foreign wholesaler. (Rzeczpospolita, p. B4) M.M.