FrieslandCampina, the Dutch dairy cooperative, has announced plans to close its factory in Gutersloh, North-Rhine Westphalia, Germany, as part of what it describes as a “a comprehensive reorientation in the German market”.
Calling the move a “fresh start”, the company said it planned to refocus its efforts on core brands such as Landliebe, Tuffi and Frico, as well as concentrating its commercial activities in the Dusseldorf area.
FrieslandCampina said that the closure of the Gutersloh site, which will affect 231 staff, was due to “overcapacities in the highly fragmented German market and years of loss-making production of private label desserts that make up the major part of the Gütersloh volumes”. The firm added that this category would now be discontinued, while other product lines would be transferred to plants in Cologne, Heilbronn and Maasdam in the Netherlands.
Commenting on the move, Jan Kruise, managing director of FrieslandCampina Germany, said: “The German market for dairy products is fragmented and characterised by fierce competition due to overcapacities. We are convinced we will be able to master these challenges by focusing on our strong brands and through strictly consumer-oriented management of our product portfolio. We are the only company with a substantial presence in all dairy categories and channels, and we will benefit from this competitive advantage by proving ourselves a preferred partner in the market in accordance with our strategy”.
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