FrieslandCampina to re-organise production

FrieslandCampina N.V., plans to shut down six production sites in the Netherlands, Germany and Belgium, over the next couple of years.

The redistribution of operations and closure of six production sites will add a total of 318 new jobs while slashing 942 jobs, causing a job loss of 624 positions.

Following the merger between Friesland Foods and Campina at the end of 2008, opportunities for maximising the production, packaging and cheese distribution operations were investigated. The merger led to an overlap in production. The investigation involved identifying the various products, production systems, the capacity utilisation and the scope for growth at each site. A decision was then taken on how production could best be organised.

Cees't Hart, CEO of Royal FrieslandCampina said, "The aim of the proposed re-organisation of the production is to reduce costs further by means of an increase in scale and efficiency improvements."

Discussions will be held with the employee representation bodies about the plans and the implications for the workforce. Permanent employees affected in the Netherlands are covered by FrieslandCampina's Social Plan.

A Royal Dairy company, FrieslandCampina produces its own dairy products such as milk products, cheese, butter and ingredients.