Dutch dairy cooperative Royal FrieslandCampina plans to reorganize its operations in Hungary as part of its efforts to ensure sustainability and continued growth of its branded business.
As a part of this strategy, the co-operative is set to shut down Debrecen plant by September 2013 and the production of selected products will be consolidated at the facility in Mateszalka, while a number of products will be outsourced.
The company has signed a letter of intent with a dairy company regarding the sale of the Debrecen plant. If a final agreement is reached, the facility would remain in operation, also producing and supplying FrieslandCampina with dairy products under contract manufacturing.
Logistics will be restructured at the co-operative's main distribution center in Budapest and other administrative functions will be consolidated in the Budapest central office by 2014.
FrieslandCampina Hungary managing director Kostas Maggioros said that the aim of the proposed reorganization is to construct a robust and competitive supply chain that will best support the future growth strategy and product portfolio in Hungary.
FrieslandCampina will also explore alternatives to minimize the social impact of reorganization.
