January 28, 2011

FrieslandCampina to invest US$49 million in Belgian production plant

The international dairy organisation FrieslandCampina is starting a EUR36- million (US$49 million) investment project in the Belgian production location in Aalter, which will almost double production capacity and create 90 extra jobs.

The project will span one and a half years and will enable the location in Aalter to develop into a state of the art factory.

The international dairy organisation is investing in the further expansion of its Belgian production locations. FrieslandCampina employs around 1,200 people in Belgium and recorded a turnover of EUR523.2 million (US$716.4 million) in 2009. The plans for the plant in Aalter involve substantial scale expansion which will lead to almost a doubling of current capacity. The products manufactured in Aalter are not solely intended for the Belgian market but also for the French, British, German and Dutch markets. This project follows on from the investments made last year in the production location in Lummen (Belgium). Moreover, investments will also be made this year in Bornem (Belgium).

Up to now, FrieslandCampina has been producing the brands Joyvalle and Campina in Aalter. In the context of the investment project, Aalter will now also produce for the Fristi, Cécémel and Nutroma brands in cardboard packaging and bottles and coffee creamer in single-serving cups. The extra volume to be transferred from other FrieslandCampina locations will create employment for 90 people in addition to the more than 500 staff currently employed at this location. The construction of the new buildings to house the extra production lines is now underway in Aalter. The project also includes a substantial investment in engineering. The total investment, which will be spread over one and a half years, will amount to EUR36 million.

The investment plan represents a major opportunity for the site in Aalter. "Thanks to this project, the plant in Aalter will be given the chance to produce a number of top brands from the FrieslandCampina product spectrum. However, it's not going to be a rush job, as the high-tech nature of our production process means we have to put a lot of thought into how we want to refurbish while still guaranteeing the highest quality," said Hugo Verhaegen, managing director of FrieslandCampina Belgium. "We will also be producing a range of products in Aalter and we want to focus on socially responsible operations. Owing to the substantial investment, we can continue to expand our company and our know-how. The idea that we will be creating 90 extra jobs is a great way to start 2011."