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The M. Dias Branco Group has closed its factory in Lençóis Paulista, resulting in the dismissal of around 500 employees. The company justified the decision as part of a restructuring to optimize costs and operational efficiency.
Amidst the industrial transformations that mark the Brazilian food sector, a recent news story draws attention to the challenges faced by traditional companies in times of restructuring and the search for efficiency.
The strategic move by one of the country's largest conglomerates reflects not only internal changes, but also significant impacts on local communities and the regional economy.
Closure of the factory in Lençóis Paulista
Last January, the M. Dias Branco Group, recognized for brands such as Adria, Piraquê and Fortaleza, announced the closure of its manufacturing unit in Lençóis Paulista, in the interior of São Paulo.
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This decision resulted in the dismissal of approximately 500 employees, generating apprehension among workers and the local community.
The company justified the measure as part of a restructuring strategy aimed at optimizing costs and improving operational efficiency.
Deactivated Unit History
The Lençóis Paulista factory has a history marked by several transitions. Founded in 1960 under the Zabet brand, the unit gained prominence in the production of biscuits.
In 1997, it was acquired by the Argentine conglomerate Socma, led by former president Mauricio Macri.
Later, in 2003, The M. Dias Branco Group incorporated the plant into its portfolio, consolidating its presence in the national food market.
Economic and social impacts
The closure of operations at the factory had significant consequences for the local economy. The mass layoff directly affected hundreds of families who depended on the jobs generated by the unit.
Additionally, we bring the region's trade and services suffered from the decrease in the circulation of income, highlighting the interdependence between industry and the local socioeconomic fabric.
To mitigate the negative effects, The company announced a benefits package for laid-off employees, including special severance pay and professional training programs, aiming to facilitate the reintegration of these workers into the market.
Redistribution of production
With the closure of the Lençóis Paulista unit, the M. Dias Branco Group plans to redistribute production to its other 21 factories spread across the country.
These units are located in states such as São Paulo, Bahia, Ceara, Paraiba, Paraná, Pernambuco, Rio de Janeiro, Rio Grande do Norte and Rio Grande do Sul.
The company believes that this relocation will allow for more efficient logistics, reduced operating costs and greater agility in the distribution of its products, strengthening its competitiveness in both the domestic and foreign markets.
Trajectory of the M. Dias Branco Group
Founded in 1953 by Manuel Dias Branco, the group evolved from a family business to the largest manufacturer of cookies and pasta in Latin America.
Over the decades, it has expanded its portfolio through strategic acquisitions, incorporating renowned brands such as Vitarella, Richester, Fit Food, Frontera and Smart.
Additionally, we bring The company is publicly traded, with shares traded on B3, reflecting its relevance in the national economic scenario.
Perspectives for Lençóis Paulista
With the deactivation of the factory, uncertainty arises about the future of industrial facilities in the city. The city of Lençóis Paulista is evaluating alternatives to attract new investments that can generate jobs and revitalize the local economy.
Meanwhile, former employees are looking for new opportunities, counting on the support of training programs offered by Grupo M. Dias Branco and regional institutions.
The situation highlights the need for public policies and private initiatives that promote economic diversification and community resilience in the face of industrial transformations.
Challenges and adaptations in the food sector
Grupo M. Dias Branco’s decision reflects broader trends in the food sector, where companies are constantly seeking to optimize their operations in response to market demands, technological advances and economic pressures.
While such restructurings may strengthen the competitive position of corporations, They also raise questions about corporate social responsibility and the role of companies in the sustainable development of the communities in which they operate.
Frequently asked questions
Why was the biscuit factory closed?
The M. Dias Branco Group decided to close the unit's activities as part of a strategy to increase operational efficiency and reduce costs.
How many employees were laid off?
About 500 workers lost their jobs when the factory closed.
Where will the factory production be transferred to?
Production will be redistributed among the group’s other 21 units, located in several Brazilian states.
Did employees receive any support after being laid off?
Yes, the company offered a benefits package, including special compensation and professional training courses to help with re-entry into the job market.
Who owned the closed biscuit factory?
Originally, the unit belonged to the Zabet brand. It was later acquired by the Argentine conglomerate Socma and, in 2003, incorporated by the M. Dias Branco Group.
This is how the economy works, the employee is dedicated, works, considers the company as his second home, big businessmen praise, say that employees are essential to the company, that everything is fine and then they fire everyone and close the unit.
Owners optimize operations, become richer, and workers become poorer.
Suggestion to laid-off employees: get together, form a cooperative and start producing better cookies. Act quickly, the severance pay will run out in a few months. Contact SESI, BNDS, ICL, you will get help. There is room to grow. The market is lacking products.