FDBusiness.com

To ensure sustainability and continued growth of its branded business, FrieslandCampina Hungary is reorganising its operations, resulting in the closure of its Debrecen factory. The production of selected products will be consolidated in the company’s factory in Mateszalka, while a number of products will be outsourced. In order to minimize the social impact of the changes, FrieslandCampina is in advanced negotiations regarding the sale of the Debrecen plant.

FrieslandCampina has been analysing possibilities to ensure sustainability of its business, by improving efficiency, reducing costs, and focusing on solidifying and further growing its branded propositions. To this end, it plans to reorganise production, closing its under-utilised factory inDebrecenby September 2013. Logistics will be restructured to FrieslandCampina’s main distribution centre in Budapest. All other administrative functions will be consolidated in the Budapest central office within 2014.

FrieslandCampina Hungary has signed a letter of intent with another dairy company about the sale of the Debrecen plant. If a final agreement is reached, the factory may remain in operation, also producing and supplying FrieslandCampina with dairy products under contract manufacturing.

Kostas Maggioros, managing director of FrieslandCampinaHungary, comments: “The aim of the proposed reorganisation is to construct a robust and competitive supply chain that will best support the future growth strategy and product portfolio in Hungary. We are optimistic that we will be able to conclude the sale of the factory and, in any case, we will do all we can to support our employees.”