Parmalat to close three Italian plants
Genoa, Como factories on chopping block21 September, 16:50
The company said it will also close the Villaguardia plant located in the province of Como, as well as a third factory in Cilavegna in the province of Pavia, according to a statement.
Parmalat said it is working with trade unions to draw up a "social plan" aimed at "limiting the impact on employment" from the closures. The company has already made contact with Italy's industry ministry to work to draw up the necessary social instruments aimed at buffering the impact on employees. Parmalat was at the center of a 2003-2004 financial scandal which saw the company collapsing after it defaulted on $16 billion of debt. It was forced to declare bankruptcy in December after disclosing that a $4.7-billion account with Bank of America did not exist. Many criminal trials ensued and it was subsequently purchased by French dairy company Lactalis.