FrieslandCampina to Discontinue Powder Production in Dronrijp and Gerkesklooster
In order to further optimise its production network, FrieslandCampina intends to discontinue powder production at its Dutch plants in Dronrijp and Gerkesklooster. As a result of this intended decision, the plant in Dronrijp, which currently produces several powder products, will be closed as of 1 April 2022. The whey and milk powder tower in Gerkesklooster will be discontinued on 15 January 2021. Gerkesklooster will continue to produce other dairy products such as cheese. The discontinuation of powder production at both locations will result in a total of 57 redundancies.
Both decisions dovetail with the acceleration of FrieslandCampina’s strategy ‘Our Purpose, Our Plan’ as announced on 10 November to, amongst others, 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.
The powder production in Gerkesklooster served as an emergency milk processing facility in the event of a failure elsewhere in the network. The powder products produced in Dronrijp for use in infant nutrition, medical nutrition and sports nutrition will be produced in other FrieslandCampina production locations moving forward. The facility in Dronrijp is part of the production network of FrieslandCampina Ingredients and that in Gerkesklooster of FrieslandCampina Dairy Essentials.
Herman Ermens, President of FrieslandCampina Ingredients, comments: “Our intended decision to discontinue the powder production in Dronrijp and to relocate these volumes elsewhere in our network came about after careful consideration. 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.”
Hans Meeuwis, President of FrieslandCampina Dairy Essentials, says: “We are continuously looking for ways to further improve our position with regard to milk processing, value creation and cost optimisation. 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.”
As a result of the intended decisions, no additional jobs will be created in other FrieslandCampina facilities. The employees and trade unions have been informed about the intended decisions and the employee representatives have been asked for advice. Employees with an employment contract for an indefinite period of time are subject to FrieslandCampina’s Social Plan. FrieslandCampina supports the involved employees in finding a new job.
