Kraft Foods Appreciates Land Offer, Romanian Plant Still To Close

International giant Kraft Foods on Wednesday said the decision to shut down its chocolate factory in Romania still stands, despite an “appreciated gesture” of local officials to offer the company more land to expand operations.
Kraft, which manufactures chocolate bars under local brands Poiana and Africana, said last week it will shut down production at its plant in Brasov, central Romania, and lay off its 440 employees by the end of 2009.

The company cited limited space for its activity, saying part of the Romanian operations will be relocated to Bulgaria.

Kraft Foods Romania corporate affairs manager, Doina Cavache, said Wednesday that local officials’ offer of additional land surface in the city, although appreciated, does not change the company’s decision to relocate.

“We appreciate the mayor’s gesture to offer a bigger plot of land. I was informed on the offer and I will notify my superiors. But for now, I have nothing new to tell you regarding the decision to shut down the factory,” Cavache said.

Kraft took over the Romanian factory in 1994.

Kraft Food Romania reported net profit of over EUR11 million in 2006.