Blaming energy costs, French food firms idles 4 factories, some 800 employees

NICE, France

A major French food company on Monday suspended activity in four factories on French soil due to energy costs, idling some 800 employees, local media reported.

Mathieu Thomazeau, the president of Cofigeo, reportedly blamed the move on expectations the firm’s energy bills would skyrocket from €4 million ($4.2 million) to €40 million ($42.2 million).

Cofigeo, the owner of brands such as William Saurin and Garbit, had 80% of the company's activities in those four factories, according to French daily Le Figaro.

"This decision aims to face the spectacular rise of energy costs (gas and electricity needed for cooking and sterilizing ready meals and cooked meals), which will be multiplied by 10 from the start of the year," Cofigeo said in a statement reported by Le Figaro.

As a result, at least 800 out of 1,200 employees of the company are put on technical unemployment.

France is facing an energy crisis due to the war in Ukraine, the weather, and infrastructure issues.

Other sectors, shops, and bakeries are suffering from similarly high energy bills.

*Writing by Nur Asena Erturk