The Dutch dairy cooperative said it is investing in its core brands, such as Landliebe, Tuffi and Frico, bundling its commercial activities in the Düsseldorf area, and taking other measures to improve profitability, including the closure of the plant in Gütersloh, which will affect 231 employees.
Jan Kruise, managing director of FrieslandCampina Germany, said by relocating and consolidating commercial functions to the Düsseldorf area in the second quarter of 2018, the company expects to drive the Germany strategy more effectively.
The consolidation will affect 74 commercial employees from Heilbronn and Cologne.
The plants in Heilbronn, Cologne and Schefflenz as well as their workforce numbering 366, 326 and 23 respectively, will not be affected by the intended move.
Closing Gütersloh site
FrieslandCampina said closing the Gütersloh site is a consequence of overcapacities in the highly fragmented German market and of years of loss-making production of private label desserts that make up the major part of the Gütersloh volumes.
This category will be discontinued, while other product lines will be transferred to the plants in Cologne, Heilbronn and Maasdam in the Netherlands.
The planned closure of production in Gütersloh is scheduled for March 2019 and the employees involved were informed today.
Kruise said, “We are convinced we will be able to master these challenges by focusing on our strong brands and through strictly consumer-oriented management of our product portfolio.
“In order to achieve our ambitious goals we will invest in our business and we will not shy away from difficult decisions that will open up the path to a successful future for the long term.”
The company said the measures being taken would restore profitability within three years.