Arla Foods is to offload a mozzarella facility in Poland as part of plans to centralise its production the cheese in Denmark.
The dairy co-op is looking to sell its site in the Polish town of Goscino and centralise mozzarella production in Rødkærsbro in Denmark.
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Arla is in talks with a possible buyer for the Goscino site, although a spokesperson declined to name the interested party. It does, however, expect to close the deal by the end of the year.
The Danish-Swedish co-operative today (28 September) said the acquisition would not affect its sales in Poland because the products are sold elsewhere in Europe.
“Poland is focused on brands such as Lurpak and other cheese products that are produced elsewhere,” a spokesperson for the company said.
Arla recognised that there are “efficiency savings to be had” when it centralises production.
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By GlobalDataOne of the reasons for the potential sale is that it makes more sense to have it in one place, the spokesperson added.
“Selling the dairy in Goscino makes sense, since most of our mozzarella business is elsewhere in Europe and is not a part of our strategic plans for our brands on the Polish market,” said Arla Foods senior vice president, Hans Christensen.
“Our priority in Poland is to offer the Polish consumers high-quality butter and cheese products and to continue our search for business partner relationships, joint venture opportunities, and acquisitions that will support our category focus.”
The dairy in Goscino currently employs 100 people and Arla in the understanding that the potential buyer will re-employ the staff and it is in Arla’s interest for the buyer to do this.
The transaction is expected to be finalised by the end of December. Arla said once the acquisition is finalised, it will be able to communicate more details.
