FrieslandCampina has announced the sale of its Debrecen plant in Hungary to local dairy Afoldi Tej.
At the end of 2012, the Dutch dairy group announced plans to close the facility in a bid to reorganise its Hungarian operations. The manufacturing of some products was to be moved to the company's factory in Mateszalka with other production outsourced.
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The latest announcement sees Afoldi Tej take over production of dairy products on site. Jobs will also be retained. The plant produces Oke and Milli brands as well as other private label brands. It also makes Kaukasian kefir, semi-long life UHT milk, curd, flavoured milks and whipping cream.
The two companies also signed a toll manufacturing agreement, guaranteeing that the products currently produced in the Debrecen plant will continue to be produced there and marketed by FrieslandCampina going forward.
Peter Szautner, managing director of FrieslandCampina's Hungarian operations, said: "This agreement is very much in line with the company’s objective to maintain the jobs of the employees of the Debrecen plant and to safeguard the future of the dairy industry in Debrecen. With this step, FrieslandCampina’s process and logistic realignment has been completed. We believe that we have reached a positive and sustainable outcome. With this deal, the company is showing its continuous commitment to the local market, production in Hungary and the most complete service available to satisfy consumer needs."
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