Nestle is shutting down a baby formula factory in Ireland due to China‘s declining birth rate.
The Wyeth Nutrition infant formula factory in Askeaton was acquired by Nestle in 2012 and is now slated to be closed by 2026. The company said the reason for the closure is the drastic decline in China’s birthrate, noting the number of babies born there has been cut in half since 2016.
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“The number of newborn babies in China has declined sharply from some 18 million per year in 2016 to fewer than 9 million projected in 2023,” Nestle said in a statement obtained by CNN. “The market, which had previously been reliant on imported infant formula products, is also seeing rapid growth in locally produced products.”
The closing of the plant is projected to put 542 workers in danger of layoffs, though the company said it is consulting with their representative unions.
“We will now consult with all employees and their representative unions,” it said. “Regrettably, today’s announcement means approximately 542 colleagues will be placed at risk of redundancy.”
The revelation is one of the first signs of the impending market catastrophe that is projected to be brought about by the drastic shrinking of China’s population. Recent studies have found that the fertility rate continues to decline, causing significant alarm from Chinese authorities.
“As the fertility rate approaches close to one birth per woman, it has increasingly become a serious concern for Chinese authorities,” Joseph Chamie, a former director of the United Nations Population Division, told the Wall Street Journal.
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China’s total fertility rate fell to 1.09 births per woman in 2022, from 1.30 in 2020, far below the replacement level, a study from the National Health Commission, cited by National Business Daily, found.
The Washington Examiner reached out to Nestle.
