February 6, 2007

Trouw Nutrition's Merksem plant specialises in export concentrates
 

Press release
 

The managements of Business Unit Hendrix and Trouw Nutrition International (TNI) have announced that the Merksem plant, in Belgium, is going to specialise in production of export feeds for TN Hifeed.

Production of broiler feeds will be transferred to the plants in Ingelmunster and Izegem (in Belgium), and partially to Deventer and Heijen (in the Netherlands). As a consequence of this proposed plan, a part of the jobs in Merksem will become redundant. 

Shifting of the remaining feeds will result in a substantial saving of production costs for Hendrix, which will strengthen its competitive position and contribute to the realisation of the 'Strategic Perspective' objectives introduced in 2004.

By moving the broiler feed activities, it is not necessary anymore to take into account specific EU regulations with regard to raw materials and additives such as antibiotics. Furthermore, Merksem is strategically and conveniently situated for TNI to meet customer needs worldwide, while the necessary specialist knowledge and experience are already available.

Hendrix will be able to arrange production at mentioned various locations more efficiently in the new situation. It does require investments in Izegem, but the overall change will lead to a substantial cost saving. Through this, Hendrix can build a stronger position in Belgium and other markets where the company is active. The transfer has to be accomplished by July 2007.

Due to the announced changes, about 50 percent of the jobs in Merksem will become redundant. The work councils and employees of Merksem and Hendrix Haeck were informed of the proposed plan, and trade unions will be consulted.

Pressure on the animal feed market in north-western Europe has made it inevitable for Hendrix to carry out these changes in order to enhance its market position.

Through a fully dedicated export feed plant in Merksem, TNI can operate in a more flexible way. It will be easier to anticipate volume peaks, and the move will enable Trouw Nutrition International to grow its animal nutrition business.