December 09, 2003

Nutreco Announces Measures For Restructuring Of Dutch Poultry Aativities

Nutreco's subsidiary for fresh poultry products in the Benelux, Pingo Poultry, announced on December 8 the measures taken to carry out the restructuring of its activities in the Netherlands, which was announced earlier this year. A total of around 125 jobs (FTE) will be lost. Pingo Poultry will make every effort, in conjunction with the trade unions and works council, to re-employ as many employees as possible within its own company or other Nutreco companies.

Earlier this year, Nutreco announced that the drastic consequences of the outbreak of Avian Influenza for the poultry sector necessitated a restructuring of its poultry activities in the Benelux. Pingo Poultry will further concentrate its activities on the production of fresh poultry and poultry products for large supermarket chains in the Netherlands and Belgium.

Other segments supplied include the industrial food market and the food service industry in North-West Europe.

In September 2003, Pingo Poultry announced a reorganisation of its Belgian activities.

The production location in Stevoort has since been closed and all Belgian activities are now concentrated in Maasmechelen. The Dutch headquarters of Pingo Poultry were also reorganised. Pingo Poultry plans to close the production location in Cuyk, while the activities in Mierlo (Brabant) will be expanded. The production in Goor (Overijssel) will be continued.

In the new situation for the Netherlands and Belgium, the company will employ approximately 1,040 employees at three production locations.

The total costs of the restructuring of the Dutch and Belgian activities, including asset write offs, are estimated to be around EUR 14 million. These costs will fully materialise in the second half of 2003.