CSM to restructure distribution in North America

The move is expected to lead to significant cost savings.

21/02/05 CSM is to restructure its North American distribution activities in bakery ingredients. Four BakeMark East distribution centers in the eastern United States – in Buffalo, Saratoga, St Louis and New Orleans – will be divested. The head office of BakeMark East in Schaumburg, Illinois, will be closed. The remaining activities of BakeMark East will be merged with BakeMark West, operating under the name of BakeMark USA from mid-May 2005. This restructuring will lead to significant cost savings. Moreover, the national orientation of BakeMark USA will result in an improved and more efficient approach to the market.

This move is part of CSM’s strategy to improve its profitability through Restructuring, Divestment and Growth. One element of this is a zero-tolerance approach to loss-making activities. The measures now being taken are in line with earlier announcements regarding the reinforcement of CSM’s strategic core activities in bakery products and food ingredients.

The restructuring affects 148 jobs. The divestment of the unprofitable distribution centers will lead to a reduction of around EUR 60 million in turnover and a marked improvement in profitability.

CSM will form a provision of EUR 5 million charged to its 2005 results for the expected costs of restructuring.