High production costs shut down Cadbury factory in Lebanon
High production costs and fierce competition has prompted Cadbury Adams Company to shut down its factory in Lebanon, sources said Friday. The factory, which was located in Zouk Mikael and produced Chiclets, a brand of candy-coated chewing gum, has informed the Labor Ministry of its decision to halt production.
The company said that it would exert its utmost efforts to ensure the rights of its employees; adding that it will not back down from its decision.
More than 100 employees will become jobless after its closure.
Caretaker Tourism Minister Fadi Abboud, who is a leading industrialist, told The Daily Star Cadbury had wanted to shut down its operations in Lebanon a long time ago.
“I think the main reason for this closure is the high cost of energy production in Lebanon. Cadbury can produce Chiclets in Egypt [for] 60 percent [less] than in Lebanon,” Abboud explained.
He said energy costs in Arab countries was a fraction of that in Lebanon.
Industrialists have constantly complained about the high cost of energy, labor and land and have urged the successive governments to take measures to protect the Lebanese industry.
There is growing concern that other energy-intensive factories in Lebanon may face the same fate as Cadbury unless the authorities come up with ways to reduce the cost of production on manufacturers.