LU Polska prepares to close major factory

Biscuit producer LU Polska, which is part of the French Danone group plans to close its plant in Jarosław, sack almost 500 employees, and move the production to another factory in Płońsk by the end of 2004. The investor claims that he was forced to make such a move by the drop in market demand, while employees claim that the plant could be saved. "We must consolidate production due to increasing competition. This is the only solution which will help us to maintain our position on the market," said LU Polska p resident Alain Locqueneux. However, employees blame the investor for a badly executed merger of the plants in Jarosław and Płońsk. It is also possible that the factory is being closed due to the fact that Danone was unable to close other production facilities in Hungary and the Czech Republic. The concern promised to help find new jobs for the people who will be laid off, but refused to sell the production line to employees. (Puls Biznesu, pp. 1, 4) M.M.