Swiss food giant Nestle has announced that it would close its factory in Kinshasa, capital of the Democratic Republic of Congo.
According to the statements by company, "We will close our factory and offices by the end of January and continue developing our economic distribution model through third parties.”
The decision affects 120 people and Nestle will offer laid-off employees "a series of compensatory measures more favourable than required by local labour laws.”
Nestle has been in the country since 2009 and opened a factory producing Maggi stock cubes, but has posted losses ever since.
The food giant’s investment of 15 million Swiss francs (US$15 million) was a boost to DR Congo, which like other central African nations is seeking to grow its industrial base and move away from being merely an exporter of minerals.
In October the Congolese affiliate of Dutch brewing giant Heineken, Bralima, announced its own restructuring plan, with a company official saying that "a complete overhaul is necessary if the economy is going to function".
