Nestlé Hungary factory closure – overview
- Nestlé will close its Diósgyőr factory in Hungary by 2026
- Falling seasonal confectionery demand drove factory closure decision
- The site contributes under 3% of Nestlé Hungary revenue
- Nestlé seeks a buyer to continue confectionery production operations
- The closure reflects wider manufacturing pressures across European confectionery
Nestlé has announced the closure of its Diósgyőr factory in Hungary.
The facility, which manufacturers hollow chocolate figures for Smarties, KitKat and Milky Bar, exports to more than 20 countries worldwide.
However, it’s said to have suffered a significant drop in demand in recent years and, as a result, now contributes towards less than 3% of Nestlé’s Hungary revenue and 0.4% of its production volume.
The decision, says Nestlé, is driven by a “decline in demand for seasonal confectionery products,” raising questions over consumer appetite for seasonal confectionery.
The Swiss multinational has “initiated negotiations on the sale and future operation of the factory,” stating that it wants to transfer the plant to “an investor who wishes to continue confectionery production”.
It has not said how many employees would be impacted by the move, but has emphasised the aim is to transfer “as many colleagues to the new owner as possible”.
Operations will cease in December 2026, with further details will be disclosed at a “later date”.
The move comes as food and beverage manufacturers across Europe review manufacturing footprints in response to changing consumer demand, rising operating costs and ongoing pressure on margins.
