Nestlé S.A. to Close Diósgyőr Chocolate Factory in Hungary

Nestlé S.A. will close its chocolate factory in Diósgyőr, Hungary, by December 2026. The facility specializes in hollow chocolate figures for brands such as KitKat, Smarties, and Milky Bar, exporting products to more than 20 countries.

The company attributed the closure to a "decline in demand for seasonal confectionery products." Management noted that the Diósgyőr site has become less critical to operations, currently accounting for less than 3% of Nestlé Hungary's revenue and 0.4% of its total production volume.

To mitigate the impact on the workforce, Nestlé S.A. has started negotiations to sell the plant to an investor who would maintain confectionery production. The company aims to transfer as many employees as possible to the new owner. This move follows a broader trend of European food and beverage manufacturers struggling with shifting consumer demands and increasing operating costs.