Dutch food ingredients firm CSM has said it is reorganising the activities of its French subsidiary, Délices de la Tour, in order to reinforce its position and its market share in France.

The move is part of CSM's strategy to improve its profitability through restructuring, divestment and growth. One element of this is a zero-tolerance approach to loss-making activities. The company is also focusing on its core activities in bakery products and food ingredients.

Délices de la Tour (DLT) is to concentrate on the production, development and sale of premium frozen dough products, such as special breads (stone-oven baked bread) and viennoiserie (croissants and brioches) and beignets. The bulk production of frozen baguettes will be halted. In addition, all logistical activities will be outsourced.

DLT is to focus production in Le Mans and at Maubeuge Quick Pain, and will therefore close the Delicefood plant in Maubeuge, the production facility in Thoiry and the warehousing and distribution activities in Petit Couronne. The measures will lead to the loss of around 200 jobs.

CSM said that as a result of this reorganisation it expects the heavily loss-making Délices de la Tour to return to break even in the course of this year.

This restructuring will lead to a charge of around €20m (US$26.4m) to CSM's 2005 results.