15 February 2023

2 minute read

By: Global Ag Media

Europe

FrieslandCampina intends to further optimise its butter production network in the Netherlands and make it more sustainable, according to a company press release. 

In order to achieve this, all butter production will be relocated to Lochem. In connection with this, the production location in 's-Hertogenbosch will eventually be closed and the Lochem production location will be expanded.

This intended decision is a direct consequence of the rising demand for cream products for the foodservice market. As a result of this, less cream is available for butter, which creates a structural overcapacity in the butter production. In light of this, the decision has now been made to merge all butter production in the Lochem location and so allow better utilisation of the butter production network. Combining the butter oil and powder production with the butter production in Lochem will lead to more efficient production. In addition, a new, sustainable butter plant will be built in Lochem, which will significantly reduce CO₂ emissions.

"We realise that this intended decision marks the end of our decades-long presence in 's-Hertogenbosch in a couple of years and that this farewell will be an emotional moment for many employees," Roel van Neerbos, president of FrieslandCampina Food & Beverage. "Of course, we will support them in finding new jobs within or outside FrieslandCampina."

Social consequences

The rebuilding of the production location in Lochem will take about two years. The expansion here is expected to create 27 new jobs. The facility in 's-Hertogenbosch will be closed mid-2025, resulting in the loss of almost 90 jobs that will partly be absorbed by natural turnover. The affected employees and trade unions have been informed and the works council has been asked for advice. FrieslandCampina will be adopting the Social Plan and will support the employees affected with finding a new job.