Ausnutria

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Ausnutria closes a factory and reorganizes others

17 January 2024 - Klaas van der Horst

Ausnutria Netherlands wants to close a factory (Ommen) and reorganize another (Kampen). The company is struggling with overcapacity, high costs and partly older installations. The new step will cost 79 people their jobs in Ommen. Jobs are also disappearing in Kampen, but others are coming back, the dairy company has announced.

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The organization in Kampen is being adjusted, resulting in the loss of eleven jobs and the creation of four new jobs. In addition, the work of thirteen employees is outsourced to an external party. Both proposed decisions are a result of changing market conditions and a recalibration of its business strategy.
Last year, Ausnutria began a recalibration of its business strategy and research into cost savings. A reorganization of the factory in Leeuwarden was then announced.

Last week it was also announced that Ausnutria will stop as main sponsor of SC Heerenveen after four seasons, also for the reason that the belt needs to be tightened.

Overcapacity
Ausnutria is a manufacturer of baby and children's food. The most important sales market, China, is shrinking. Market conditions now have consequences for the factory in Ommen. The activities can be accommodated in Kampen and Heerenveen.

Van der Meer: "In this difficult market and with the operationalization of our new factory in Heerenveen, our drying capacity is too large. The factory in Ommen no longer meets the requirements and wishes for a future-proof production process for baby and infant food, despite investments in the in recent years. When recalibrating the strategy, in addition to adjusting capacity, we also see the need for cost savings and increased efficiency."

Kampen adjustment
In Kampen, Ausnutria wants to produce more efficiently and simplify the organization. This will result in the loss of eleven jobs and the creation of four new ones, which will first be offered to redundant employees. In addition, Ausnutria plans to outsource the work of thirteen employees to a third party, which may mean that the employees can transfer to this new employer.

New tower Heerenveen
The construction of the new drying tower in Heerenveen will be completed in early 2024. Van der Meer: "We started construction in 2021 to ensure a sustainable expansion of our drying capacity. Against the backdrop of the difficult Chinese market, but encouraged by the growing demand for goat's milk formula in the rest of the global market , this factory will be commercially operational at the end of this year. This factory will operate completely sustainably and, together with the factory in Kampen, will take over the activities of the factory in Ommen."

Ommen will close according to plan at the end of 2024. The consequences of the reorganization will be further elaborated in the coming months. All proposed decisions are subject to advice from the (Central) Works Council.

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