FrieslandCampina To Reorganise Supply Chain in Hungary

To ensure sustainability and continued growth of its branded business, FrieslandCampina Hungary intends to reorganise its operations. As a result, the Debrecen factory is planned to be closed. The production of selected products will be put together in the company’s factory in Mateszalka, while a number of products will be outsourced. At the same time, FrieslandCampina explores alternatives to minimize social impact, thus also announced today that it is in advanced negotiations regarding the sale of the Debrecen plant.

03 Jan --- FrieslandCampina has been analysing possibilities to ensure sustainability of its business, by improving efficiency, reducing costs, and focusing on solidifying and further growing its branded propositions. To this end, it plans to reorganise production, closing its underutilised factory in Debrecen by September 2013. Logistics will be restructured to FrieslandCampina’s main distribution centre in Budapest. All other administrative functions will be consolidated in the Budapest central office within 2014.

FrieslandCampina explores alternatives to minimise the social impact of above reorganisation. FrieslandCampina Hungary has signed a letter of intent with another dairy company about the sale of the Debrecen plant. If a final agreement will be reached, the factory may remain in operation, also producing and supplying FrieslandCampina with dairy products under contract manufacturing.

Kostas Maggioros, Managing Director of FrieslandCampina Hungary, stated: “The aim of the proposed reorganisation is to construct a robust and competitive supply chain that will best support the future growth strategy and product portfolio in Hungary. We are optimistic that we will be able to conclude the sale of the factory and, in any case, we will do all we can to support our employees.”

The employees were informed while discussions will be held with the employees’ representatives about the plans and implications for the workforce.