News FrieslandCampina
FrieslandCampina closes factory again
FrieslandCampina announces that it will close the branch in Bree (Belgium). This is mainly because the mozzarella factory is not achieving the desired return.
The cooperative took over the Fabrelac factory in 2015 and wanted to respond to the fast-growing mozzarella market in this way. However, it now appears that the factory is not profitable enough. The closure means that approximately 30 employees will be out of work as of January. The location produces about 30.000 tons of mozzarella every year.
When FrieslandCampina took over the factory, it was already not making a profit. About 1 year before the takeover, the factory had a turnover of €46 million and a net loss of €1,9 million, according to data from Central Bank Balance Sheet of the National Bank of Belgium. After that, the dairy cooperative struggled to get the mozzarella producer on track, but that doesn't seem to be working now.
New strategy
The closure of the factory in Belgium also appears to be a consequence of FrieslandCampina's new strategy. In this letter, the cooperative indicates that it wishes to process less milk in unprofitable products.
It is not the first factory that FrieslandCampina has closed in recent years. The company announced 1 year ago that it no longer sees a future for their factory in Gütersloh (Germany) and it will close in March. As a result, 231 employees will lose their jobs.
Tim Roetman
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