FDBusiness.com

Royal FrieslandCampina has agreed to sell its Debrecan plant in Hungary to local dairy producer Alfoldi Tej for an undisclosed price. The new owner will continue the production of dairy products on site without interruption and employment will be maintained. Besides the purchase and sale agreement, the two companies also signed a toll manufacturing agreement, guaranteeing that the products currently produced in the Debrecen plant will continue to be produced there and marketed by FrieslandCampina going forward. The sale of the Debrecen plant is another milestone in FrieslandCampina’s process and logistics realignment in Hungary, which now has been completed.

The goal of FrieslandCampina’s realignment was to support the long-term sustainability of the domestic production capacity and to make it more efficient and competitive, thus ensuring a strong presence on the Hungarian market in the future as well. The substantial expansion of the Mateszalka plant in 2014 and the protection of the future of the Debrecen plant were two crucial steps in this process.

Peter Szautner, managing director of FrieslandCampina Hungária, comments: “This agreement is very much in line with the company’s objective to maintain the jobs of the employees of the Debrecen plant and to safeguard the future of the dairy industry in Debrecen. With this step, FrieslandCampina’s process and logistic realignment has been completed. We believe that we have reached a positive and sustainable outcome. With this deal, the company is showing its continuously commitment to the local market, production in Hungary and the most complete service available to satisfy consumer needs.”

The agreement has received approval by the authorities.