FrieslandCampina has announced that it intends to further optimise its butter production network in the Netherlands while making it more sustainable.
The Dutch multinational dairy cooperative says this will achieved by relocating all butter production to Lochem.
The production location in 's-Hertogenbosch will eventually be closed and the Lochem production location will be expanded.
In a statement, FrieslandCampina said the intended decision is a direct consequence of the rising demand for cream products for the foodservice market.
It claims less cream is available for butter, which creates a structural overcapacity in the butter production.
More Efficient Production
The company said combining the butter oil and powder production with the butter production in Lochem will lead to more efficient production.
Furthermore, it is hoped the new plant will be more sustainable which will significantly reduce CO2 emissions.
FrieslandCampina notes the rebuilding of the production location in Lochem will take about two years. The expansion is expected to create 27 new jobs.
The facility in 's-Hertogenbosch will be closed mid-2025, resulting in the loss of almost 90 jobs.
FrieslandCampina noted the affected employees and trade unions have been informed and the works council has been asked for advice.
The company said it will be adopting a social plan and will support the employees affected with finding a new job.
"We realise that this intended decision marks the end of our decades-long presence in 's-Hertogenbosch in a couple of years and that this farewell will be an emotional moment for many employees," said Roel van Neerbos, president of FrieslandCampina Food & Beverage.
"Of course, we will support them in finding new jobs within or outside FrieslandCampina."
© 2023 European Supermarket Magazine – your source for the latest supply chain news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.