FrieslandCampina has announced that it intends to close its Yoko Cheese packaging facility in Genk, Belgium, as part of its ongoing restructuring strategy.
A statement from FrieslandCampina claims that the decision to close the Yoko Cheese location in Genk is based on the current underutilisation of its cheese packaging network, as the company seeks to restructure its operations to save costs.
Following the closure of the Genk location, the firm’s cheese packaging activities will be concentrated at its existing sites in Wolvega and Leerdam, both in the Netherlands.
The intended closure of the Genk location is planned for the end of 2021, and will reportedly lead to 211 job losses. This announcement represents the start of the formal information and consultation process.
Hans Meeuwis, president of FrieslandCampina Dairy Essentials, said: “In line with our strategy, we are continuously looking for ways to further improve our position with regard to value creation and cost optimisation.
“Of course, we do this after careful consideration of all interests, including those of the impacted employees. I am aware that the intention to close our Genk location has a major impact. In case of closure, the company will provide our employees with maximum support in finding new jobs.”
This latest closure follows on from cost-cutting measures implemented by FrieslandCampina’s Germany subsidiary, which announced that it would cut 195 full-time jobs at its production sites in Heilbronn and Cologne; make cuts to its portfolio; and explore the potential divestment of non-core assets.
Earlier this month, the company also announced that it would discontinue powder production at its production plants in Dronrijp and Gerkesklooster, the Netherlands, as part of its restructuring strategy.
The company also made the decision to permanently close its production facility in Rijkevoort, the Netherlands on 1 October as part of this cost-saving strategy. According to FrieslandCampina, the decision to permanently cease operations at Rijkevoort was due to a mismatch between the current production capacity of its Dairy Essentials division and expected future milk ‘developments’.
© FoodBev Media Ltd 2020
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