FrieslandCampina to merge cheese production in Romania

Dutch dairy cooperative FrieslandCampina is set to consolidate its cheese production in Baciu, Romania, in response to tough market conditions, particularly the lack of consumer spending in the country.

The consolidation will result in the relocation of the company’s cheese production in Carei and cheese packaging unit in Targu Mures by January 2015.

The company noted that the relocation of the cheese production facility will enable it to improve its present and future efficiency and performance. Savings generated as a result of the restructuring process will go towards the company’s Romanian dairy brand Napolact as well as technological and product innovation.

This move is in line with FrieslandCampina’s plan to ensure a sustainable long-term presence on the local market and improve performance.

According to FrieslandCampina, over the past five years dairy product consumption in Romania has decreased by more than 6% annually, forcing the company to operate under capacity at all its plants.

The consolidation will enable FrieslandCampina to continue to invest in the Napolact brand.

FrieslandCampina Romania managing director Jan Willem Kivits said the decision was made after careful consideration and with serious attention to 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," Kivits added.

"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," added Kivits.

Currently, about 130 people working in Carei will receive full company support under the terms of the collective labour agreement, including a social plan and assistance in finding future career opportunities.