NEWS IN BRIEF

FrieslandCampina plants cease nutrition powder production as part of firm shake-up

By Will Chu

- Last updated on GMT

©FrieslandCampina
©FrieslandCampina

Related tags Frieslandcampina Powder Sports nutrition Medical nutrition Infant nutrition

FrieslandCampina are to discontinue the production of several powder products used in infant nutrition, medical nutrition and sports nutrition at its Dutch plants as part of the firm’s transformation strategy.

In an announcement this week, the dairy multinational revealed the manufacturing facilities based in Dronrijp and Gerkesklooster will close as from 1 April 2022, with production moved to other locations.

The whey and milk powder tower in Gerkesklooster will be discontinued on 15 January 2021 with 57 job losses at both locations.

“Our intended decision to discontinue the powder production in Dronrijp and to relocate these volumes elsewhere in our network came about after careful consideration,” ​says Herman Ermens, President FrieslandCampina Ingredients.

“We looked at current production capacity and future market developments. I am aware that this decision will have a big impact on the involved employees, and we will, of course, provide them with proper guidance and support during this process.” 

Rijkevoort closure

The scaling down of the firm’s production facilities follows October’s closure of its plant in Rijkevoort, where all 86 employees were made redundant.

Only last month, FrieslandCampina announced it was to accelerate the progression of its transformation strategy 'Our Purpose, Our Plan,' citing the effects of COVID-19 as a reason.

The strategy outlines one objective, which looked to reduce structural overcapacity through plant closures or by relocating production volumes.

The discontinuation of the activities in Dronrijp and Gerkesklooster fits in this strategy and will contribute to the announced cost savings.

“We are continuously looking for ways to further improve our position with regard to milk processing, value creation and cost optimisation,”​ explains Hans Meeuwis, President FrieslandCampina Dairy Essentials.

“Needless to say, we do this with all interests in mind and concern for all employees involved. This step fits in with the further improvement of our position. As a site, Gerkesklooster remains important for the production of other dairy products such as cheese.”

Asian gateway

FrieslandCampina’s strategy also looks to beef up its infant nutrition interests with the introduction of a new route to market in Hong Kong/China.

Hong Kong has been an important gateway to southern China for FrieslandCampina for many years. As the borders between Hong Kong and China are still closed, that route to market is no longer viable and the profitability of our business in Hong Kong is under tremendous strain.

“We are implementing a new route to market for Hong Kong and southern China, with a prominent role for e-commerce and product innovations,”​ the plan outlines.

“Nonetheless, it will take time before this new route to market has replaced the old one in terms of revenue and profit.”

Related news

Show more

Related products

show more

Oats: A Superfood for Sport Nutrition and Health

Oats: A Superfood for Sport Nutrition and Health

Content provided by Fazer Mills | 26-Jan-2024 | White Paper

Oats are a versatile, affordable, and easy to use superfood that can offer many health benefits and a well-balanced nutritional profile for athletes.

Unlock the business potential of the protein trend

Unlock the business potential of the protein trend

Content provided by Valio | 24-Jan-2024 | White Paper

Read our white paper to learn how to overcome taste and texture challenges in protein products — and how to commercialise the protein trend by making delicious...

Boost Your Sports Nutrition Solution with Peptan

Boost Your Sports Nutrition Solution with Peptan

Content provided by Rousselot | 13-Nov-2023 | White Paper

Athletes are prioritizing their well-being and seeking nutritional solutions to optimize recovery, making it an indispensable aspect of their performance.

New Study for Female Athletes

New Study for Female Athletes

Content provided by Gencor | 19-Oct-2023 | Product Brochure

In a recent clinical trial backing its ingredient Libifem® for improved muscle strength, power, endurance and body composition with a females-only popluation...

Related suppliers

Follow us

Products

View more

Webinars