A-ware buys powder towers from FrieslandCampina

A-ware intends to take over the milk powder towers that FrieslandCampina operates in Aalter, Belgium. The upcoming deal can be seen as a remarkable step. 

FrieslandCampina's powder towers in Aalter (see picture) produce 45.000 tons of milk powder annually. FrieslandCampina also produces consumer dairy on the same site, but that branch is not being divested. The deal is likely to be finalized in the first quarter of 2021. A-ware does not want to disclose what acquisition amount is involved.

Fifth Country
A-ware is a large producer of various cheese products and also produces consumer dairy products for Albert Heijn. By now also producing milk powder in Belgium, this represents a new direction for the company. In their own words, the step is intended to serve customers with the broadest possible product portfolio.

The plans in Belgium are the fourth step for A-ware outside the Dutch borders. In Ireland, the dairy company, together with dairy cooperative Glanbia, plans to build a cheese factory, although those plans are still on hold due to various lawsuits. In addition, A-ware is active in Switzerland and Italy. The internationalization of the dairy group is thus increasingly taking shape. 

The milk required for powder production in Aalter will, incidentally, still be supplied by FrieslandCampina during the transition period. It is not yet known whether this will remain the case. In the course of next year, A-ware wants to unfold how this will be handled in the future. 

Cutbacks FrieslandCampina
The fact that FrieslandCampina is disposing of the powder towers fits in with the reorganization plans implemented by the dairy cooperative. In that context, several factory closures were recently announced with the aim of saving €100 million per year. The sale of the powder towers means that 40 jobs will be transferred to A-ware. In total, about 1.000 jobs will disappear at FrieslandCampina, mainly in the Netherlands, Belgium and Germany.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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