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Through relocation, FrieslandCampina intends to optimise its butter production network in the Netherlands and make it more sustainable. In order to achieve this, butter production will be relocated to Lochem and the company’s production location in 's-Hertogenbosch will be closed. The Lochem production site will be expanded with the addition of a sustainable butter plant that will ‘significantly’ reduce CO2 emissions. This decision comes as demand for cream products for the food service market rises, resulting in less cream available for butter, creating a ‘structural overcapacity’ in butter production. Consequently, FrieslandCampina made the decision to merge all butter production in its Lochem location to enable better utilisation of the butter production network. According to the company, “combining the butter oil and powder production with the butter production in Lochem will lead to more efficient production”. The building of the Lochem production location is predicted to take around two years and is set to create 27 new jobs. The 's-Hertogenbosch facility will be closed in mid-2025, which the company says will result “in the loss of almost 90 jobs that will partly be absorbed by natural turnover”.