FrieslandCampina plans to consolidate its cheese business in Romania amid “tough market conditions”.
The Dutch dairy giant plans will transfer cheese production and packing at sites in Carei and Targu Mures to a single site in Baciu.
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The restructuring process is expected to be completed by January. Some 130 people are employed at Caeri, which will close.
A further 300 work at the Targu Mures facility but the move will only affect the cheese cutting and packaging departments at the site, where 35 staff are employed. The cheese cutting and packaging facilities at the Targu Mures will close but the rest of the site will stay open.
FrieslandCampina stressed it will provide support to all affected staff.
It said the move was a response to “tough market conditions” and weak consumer spending in the country.
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By GlobalDataOver the past five years, dairy consumption has dropped 6% in Romania and, as a result, “all” the company’s local plants are operating under capacity, FrieslandCampina said.
The group added it will reinvest savings into technical and product innovation as well as support for its Napolact brand in the market.
“Consolidating our cheese activities is part of our roadmap for Romania, which involves fundamentally improving our performance as our current production footprint is no longer sustainable. Our factory in Carei is operating at less than 30% of its capacity. This change is a necessary step in facing market challenges, preserving and investing in our local brands and ensuring business continuity,” Jan Willem Kivits, MD for FrieslandCampina Romania, said.
