FrieslandCampina Romania announced the consolidation of its cheese production in Baciu. This will result in the relocation of its cheese production in Carei and its cheese packaging unit in Targu Mures by January 2015.
FrieslandCampina Romania is forced to take these measures due to tough market conditions, particularly the lack of consumer spending. By relocating its cheese production facility, the company will improve efficiency and performance, now and in the future. Savings realised due to the restructuring will go towards its brand Napolact as well as technological and product innovation.
FrieslandCampina Romania is adjusting its business to the current market conditions, in order to ensure a sustainable long-term presence on the local market. Over the past five years, dairy product consumption in Romania has decreased by more than six percent per year, thus forcing the company to operate under capacity at all its plants. Consolidation of its cheese production in one location will help to improve performance.
Jan Willem Kivits, Managing Director FrieslandCampina Romania: “It is not a decision that was taken overnight and made with serious attention to the employees’ rights. This is why our first priority is caring for our people, and we will focus on providing our full support to all impacted by this process.”
It is estimated that the consolidation process will be completed in January 2015. Currently, around 130 people are working in Carei and all will receive full company support under the terms of the collective labour agreement. This includes a social plan and assistance in finding future career opportunities.
“Consolidating our cheese activities is part of our roadmap for Romania, which involves fundamentally improving our performance as our current production footprint is no longer sustainable. At present, our factory in Carei is operating at less than thirty percent of its capacity. This change is a necessary step in facing market challenges, preserving and investing in our local brands and ensuring business continuity,” says Kivits.
The main focus of this consolidation is to improve efficiency, which will enable FrieslandCampina to continue to invest in the Napolact brand and in technology. The Napolact brand represents a full range of well-crafted, high-quality dairy products, in keeping with the tradition of the Ardeal region.
