Dairy giant FrieslandCampina has decided to close a baking unit in the Netherlands and merge the facility's operations into a second site in the country.

The company, the world's fifth-largest dairy group, said it would shutter its site in Oldenzaal next year and move its baking and catering operations into a second facility in Nuenen.

FrieslandCampina said jobs would be lost at both sites but said the more detail could be given in September after talks with staff representatives.

The Friesland Foods Professional in Nuenen produces and sells cream, butter, cake fillings, desserts and sauces under the Debic, Hollandia and Evri brands.

"The merger will result in a stronger and more professional business," the company said. "It is therefore more efficient to merge the operations and to serve the food service market in the Netherlands from one location in Nuenen. The operations will be continued under the name FrieslandCampina Professional."