Purac the next to restructure under CSM plans

CSM subsidiary, PURAC Nederland, which produces lactic acid, lactic acid derivatives, and gluconates anticipates the loss of approximately 65 jobs out of a current 380.

CSM have announced further restructuring, as the Dutch company’s chemicals division now goes under the knife. CSM subsidiary, PURAC Nederland, which produces lactic acid, lactic acid derivatives, and gluconates anticipates the loss of approximately 65 jobs out of a current 380. The intended restructuring particularly affects the production and support services of PURAC biochem (Gorinchem) and PURAC glucochem (Ter Apelkanaal).

CSM said that the restructuring at PURAC Nederland will improve efficiency and is in line with earlier announcements on CSM’s intentions to strengthen its strategic core activities in bakery supplies and food ingredients. “We are coping with a program of restructuring, reorganization and growth. We are looking very closely at competitive efficiency measures and growth opportunities and one of the outcomes was a reorganization at Purac,” spokesperson, Marjolein Moerer told FoodIngredientsFirst. Purac had been performing “quite well,” with a net turnover of 271.3 million euros and a return on sales of 16.4 million euros, Moerer said, but, “things can always go better.”

CSM restructured much of its bakery business earlier this year, as it aims to bounce back from poor results last year. CSM restructured its North American distribution activities in bakery ingredients. Four BakeMark East distribution centers in the eastern United States were divested, while 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. Moerer said that the restructuring in bakery is still on-going and she hoped that the program would lead to improved results in 2007.

CSM also recently announced plans to restructure its sugar facility in Breda, as the dreaded EU sugar reforms come through. The latest plans for Purac however have nothing to do with the price cut which will see the price of sugar beet and sugar fall by 42% and 39% respectively, Moerer said.

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