VION Food Netherlands has announced that it will be modifying its personnel structure to further improve efficiency and to reduce costs. This is necessary to reinforce the company’s competitive position on the strongly contested food market.
The modifications are the result of the VION Food Group’s new course which was announced on 19 November 2012. The intended organisational modifications pertain to staff in general administrative positions. This will affect the labour opportunities of 105 employees. VION Food Netherlands’ Group Works Council has been asked for advice on the proposed decision.
Redundancy will be requested for 40 staff. The remaining 65 employees will be relocated or will leave as a result of natural wastage. These changes will allow VION Food Netherlands to work more effectively and reduce costs. This is crucial in order to maintain the right market position.
VION N.V. is an internationally operating food company with two core activities: Food and Ingredients. The group produces high-quality foodstuffs for humans and animals. VION's turnover is €9.5 billion and the company employs 26,500 staff. VION is not a listed company and has one shareholder, the Dutch Zuidelijke Land- en Tuinbouworganisatie (ZLTO), an agricultural and horticultural association with some 18,000 members. The VION head office is in Eindhoven, the Netherlands. VION Food Netherlands has two business units: pork and beef. The company produces and processes high-quality pork and beef products at nine production locations in the Netherlands. It supplies client-specific products and innovative concepts to retail, industrial and foodservice clients in the Netherlands, Europe and the rest of the world.
Last week VION NV announced that it has embarked on a process to sell its UK food businesses to concentrate on its core markets in the Netherlands and Germany and the development of its global ingredients business.
The new strategy means that VION will be divesting all its food activities in the UK and a number of non-core activities, including Banner Pharmacaps (divestment announced on 29 October 2012) and Oerlemans Foods (frozen vegetable and potato products). The decision to create a smaller VION, with increased strategic and geographic focus, follows the strategic reorientation implemented earlier this year, the results of which were announced on 15 June 2012. This new course is also aligned with the announcement made on 4 September 2012 that the company would be implementing the strategy.
VION NV is confident that it will successfully sell its UK pork, red meat and poultry business units as ongoing viable businesses.
