Major French Food Company Shuts Down 80 Per Cent of Production as Soaring Energy Costs Make Factories Uneconomical

Cofigeo, a group which owns several food companies in France, has shut down four of its eight factories over energy costs, amounting to 80 per cent of its total production.

Cofigeo owns several French food brands including William Saurin, Garbit and Raynal and Roquelaure and has announced it has shut down four of its eight French factories, affecting 800 of the company’s 1,200 workers due to soaring energy costs.

The move was initially made on December 6th but came into force on January 2nd and sees plants in Capdenac, Pouilly-sur-Serre, Camaret-sur-Aigues and Lagny closed and production halted, the newspaper Le Figaro reports.

“This decision aims to cope with the spectacular increase in its energy costs (gas and electricity necessary for cooking and sterilizing cooked dishes and recipes), which will be multiplied by 10 from the beginning of the year,” the group said in a statement this week.

The group warned that its energy costs were set to surge this year, with president Mathieu Thomazeau saying, “It will go overnight, from 4 million to 40 million euros.”

Cofigeo is the first major food producer to enact such radical measures to deal with the costs of energy but according to Le Figaro, other companies in the sector are also facing great difficulty adjusting to the rising prices of energy.

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