VION Food Netherlands Announces Restructuring

This restructuring will result in the further concentration of production and will lead to the closure of the VION Doetinchem and Ballering Export production locations. The concentration and specialisation of the remaining production locations will facilitate quality optimisation and will reduce costs.

5/4/2011 --- VION Food Netherlands is to modify its organisational structure to create more synergy between its core activities. This is claimed to be crucial in order to maintain a strong position in a very competitive market environment.

This restructuring will result in the further concentration of production and will lead to the closure of the VION Doetinchem and Ballering Export production locations. The concentration and specialisation of the remaining production locations will facilitate quality optimisation and will reduce costs. The new structure and the planned modifications to the various production processes and logistics services will lead to increased efficiency. It is envisaged that approximately 170 permanent jobs will be lost. VION Food Netherlands expects to be able to transfer approximately 115 VION staff internally and will apply for the redundancy of approximately 55 employees who cannot be transferred. VION Food Nederland’s Groeps Ondernemingsraad (GOR) [Group Works Council] has been asked for advice concerning the proposed reorganisation. Consultation will be started with the unions in order to arrive at a redundancy scheme.

VION Groenlo will further specialise in the slaughter and processing of sow meat. This entails the termination of Ballering Export’s activities in Son. Bacon production will be concentrated at VION Scherpenzeel. This means that bacon production at VION Doetinchem will cease.The above will enable VION Groenlo and VION Scherpenzeel to make optimum use of their capacity and focus entirely on their core activities.

The organisational changes will have consequences for 170 permanent staff and 200 temporary staff. VION Food Nederland will consult with the unions in order to arrive at a redundancy scheme for the 55 VION staff for whom no job openings are available. The expectation is that VION Food Nederland will have completed the integration process in September 2011.

VION is an internationally operating food company with two core activities, Food and Ingredients. The company produces high quality foods and ingredients for humans and animals. VION has an annual turnover of € 9 billion and employs more than 27,000 staff. VION is a non-listed company and has a single agricultural shareholder: the Zuidelijke Land- en tuinbouworganisatie ZLTO [Dutch Southern Farmers and Market Gardeners Union] which has 18,000 members. VION’s head office is located in Eindhoven (NL).

VION Food Nederland has two business units: Fresh Meat and Convenience. The company produces and processes high quality pork and beef products at ten production locations in the Netherlands. The company supplies tailor-made products and innovative concepts to retail, industrial and food service clients in the Netherlands, Europe and the rest of the world.