CSM Reveals US Job Cuts

Together with the previously announced closures of two plants as a result of the Best Brands integration, Bakery Supplies North America is reducing its workforce by 330 before mid January 2012 at the latest.

Nov 14 2011 --- CSM is, as previously announced, executing a restructuring program to re-position the organization to the changing consumer environment. This CSM wide restructuring program is geared to achieving a more lean and agile operating model. The total program is targeting a cost reduction of € 50 million by the end of 2013 (run rate), of which at least € 30 million is targeted to be achieved in 2012. In driving this program, Bakery Supplies North America has announced 140 staff redundancies, which will take effect in the fourth quarter of 2011. Together with the previously announced closures of two plants as a result of the Best Brands integration, Bakery Supplies North America is reducing its workforce by 330 before mid January 2012 at the latest.

The staff redundancies are affecting all of the North American activities of CSM, with a major share of the reduction in the biggest CSM operating company Bakery Products North America. Through these organizational changes we have enhanced market responsiveness and lowered our cost base to address the new reality, which is driven by the current lower consumer demand and increased raw material costs.

In addition, the previously announced closures of the facilities in Oak Creek and La Mirada, following the integration of Best Brands, will be finalized in this month, involving a workforce reduction of an additional 190 as earlier indicated. This brings the total workforce reduction in Bakery Supplies North America to 330.

CSM will give a further update on its restructuring program and business review at its full year results presentation (21 February 2012).