Campina to invest in butter and butter oil production

The investments will lead to further optimisation of the production process and enable the introduction of new products.

27/02/06 Campina, one of Europe's major producers of butter and butter oil, is to invest in the production of butter and butter oil. These investments will lead to further optimisation of the production process and enable the introduction of new products. Campina is investing in new technology and the expansion of production at its butter plant in 's-Hertogenbosch (the Netherlands) and butter oil plant in Klerken (Belgium). Campina then plans to discontinue production of butter and butter oil at its production plant in Aalter (Belgium) in mid-2007. This plant is and will remain Campina's international strategic production location for long-life milk and dairy drinks.

Campina Buttergold, a division of Campina's Cheese & Butter group, currently produces butter and butter oil at three locations: 's-Hertogenbosch (butter), Aalter (butter and butter oil) and Klerken (butter oil and milk fat specialties). Aalter is the smallest production location of the three for butter and butter oil.

The further specialisation and upscaling of the locations in 's-Hertogenbosch (butter) and Klerken (butter oil) offer Campina Buttergold the opportunity to improve efficiency and introduce distinctive concepts in butter and butter oil. On this basis, Campina Buttergold can further strengthen its market position.

Campina Buttergold operates internationally, both in the European Union (EU) and beyond. Within the EU, the Netherlands, Belgium, France, Germany and Austria are important sales markets.

In consumer products, Campina Buttergold concentrates on special concepts to distinguish itself from the competition. Good examples of this approach are low-fat butter concepts, butter that is easy to spread straight from the refrigerator and attractive packaging, such as the butter tub. With Campina Botergoud and Campina Buttergold/Leichtgold, Campina is one of the main suppliers of brand-name butter in the Netherlands, Germany and Austria.

In the industrial segment, Campina Buttergold serves clients such as industrial bakeries, ice cream manufacturers, chocolate producers and producers of ready-made meals, and sets itself apart through its know-how and technology in the fields of fractioning milk fats, i.e. separating milk facts into soft and hard fractions. Soft milk fats are used, among others, for easy-to-spread butters for the consumer market, while hard milk fats are ideal for use in the bakery sector.

The investments in 's-Hertogenbosch and Klerken (more than EUR 2 million) and the discontinuation of the butter and butter oil activities in Aalter, will lead to a net reduction in jobs. Jobs will be lost in Campina's butter activities in Aalter, while the number of jobs in Klerken (60 kilometres from Aalter) and 's-Hertogenbosch will increase. Wherever possible, Campina aims to offer the workers concerned in Aalter jobs in Klerken or in other departments of the Aalter production plant.

Aalter is Campina's strategic production location for (long-life) milk and dairy drinks, which Campina sells in Europe and beyond, under brand names such as Campina Yazoo and Campina Yogho Yogho. In recent years, Campina has invested some EUR 80 million in the plant, including a major modernisation and expansion of production capacity (275 million UHT bottles per year), as well as a completely new 10,000 m2 automated warehouse. The plant in Aalter provides jobs for some 500 employees.

The employees and works councils involved, as well as the Campina International Consultative Committee (CIO) have been informed of the plans.