Vion Food Group has invested €35 million to modernise its meat production facility in Boxtel, the Netherlands, as the company aims to consolidate its production operations and optimise its supply chain.
As a direct result of the investment, some of the operations taking place at the company’s production site in Scherpenzeel – such as the production of pork ribs – will cease and be moved to the Boxtel site.
Vion says that the approximately 120 workers at the Scherpenzeel site will be relocated to the company’s Boxtel, Apeldoorn or Groenlo sites, or will leave “by means of natural labour turnover.”
According to Vion, this consolidation process will allow the company to operate a shorter supply chain and increase efficiency, while the operation of a single facility will make the company’s operations more sustainable. Vion estimates that the move will reduce the distance travelled by goods transport vehicles by one million kilometres annually.
The proposed plan is estimated to be completed by mid-2021, and has the full backing of Vion Food Group’s shareholders.
John de Jonge, COO at Vion Pork, said: “This investment in a more integrated production is an important step for Vion.
“It will improve our international competitive position and the quality of our products. Thanks to the careful approach, we limit the nuisance for neighbours to a minimum and it will contribute considerably to making the production of meat more sustainable.
“Optimising the production chain is one of the focal points in our strategy.”
© FoodBev Media Ltd 2019
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