Roshen Corporation has decided to stop the production activity of Lipetsk confectionery factory (Russia). This decision was made for economic and political reasons, - LІGA.net reports with reference to the press service of the corporation.
It is noted that a complete halt of production and conservation of industrial and infrastructure facilities is planned for April 2017.
It is also stressed that mass layoffs were constant due to the decline in production at the factory. The remaining staff (about 700 people) has already been informed about the upcoming stop of the factory activities. The required notification of a mass layoff will be filed in the Lipetsk center of employment in the near future.
As previously reported, the seizure of property of Lipetsk confectionery factory by the Investigative Committee of the Russian Federation within a framework of the criminal investigation made it impossible to sell the factory. Roshen noted that manufacturing at Lipetsk confectionery factory was reduced thrice as from 2013. The reason for this were the sharp decrease of assortment after the unreasonable prohibition of Roshen Ukrainian products import to the Russian Federation by the Federal Service for Supervision of Consumer Rights Protection and Human Wellbeing, the active discredit of the factory activity in the Russian and Ukrainian media, the pressure of the authorities on the trade organizations because of the sales of production of Lipetsk confectionery factory in a number of regions, and the all-round fall of consumer purchasing power.