Efficiency improvements lead to cost reduction and loss of 40 permanent jobs

FrieslandCampina in Lochem and Veghel

31 March 2016

FrieslandCampina has conducted research into the possibilities to improve the methods of working, raise the efficiency and reduce the costs in its production locations in Lochem and Veghel (both in the Netherlands). As a result of this, considerable savings will be achieved in the coming three years.

The major part of the savings will be achieved by making better use of the capacity of the production lines and by reducing the use of material and energy. The employees of the various departments are closely involved in the proposals for improvement with respect to operational management and the set-up of the organisation. As a consequence of the adjusted methods of working, tasks and responsibilities of employees may change and the number of jobs at various levels in the organisation can be decreased. A total of about 40 permanent jobs (FTEs) will be lost in both FrieslandCampina locations in the next three years. In addition, the number of temporary workers and people with employment contracts for a definite time will be structurally lowered by about 48 FTEs.

FrieslandCampina Butter & Milkpowder in Lochem

At FrieslandCampina Butter & Milkpowder in Lochem, which produces butter, butter oil and milk powder, savings can mainly be achieved by standardising methods of working, making better use of the capacity, lowering material losses and decreasing the use of energy. As a result of the adjustments, about 18 permanent employees and about 14 temporary jobs that are at present filled by employees with temporary contracts and workers who work via employment agencies will be lost in the coming three years. Currently, the location in Lochem has 216 employees.

FrieslandCampina Ingredients in Veghel

At FrieslandCampina Ingredients in Veghel, which among other products produces milk and whey proteins for the food industry, the use of the production capacity can be improved and the loss of material and use of energy can be reduced. As a result of the adjustments in the tasks and responsibilities, 22 permanent jobs and about 34 temporary jobs that are presently filled by employees with temporary contracts and workers who work via employment agencies will be lost in the coming three years. FrieslandCampina in Veghel currently has 510 employees.

In line with the strategy

In the framework of the implementation of its route2020 strategy, FrieslandCampina is working on increasing the efficiency in order to save costs and thus make financial resources available to establish growth. An efficiently functioning organisation is important in order to be able to process and valorise all the milk supplied by the member dairy farmers in a competitive way. FrieslandCampina started this efficiency programme in its locations in Beilen and Leeuwarden in 2015.

Social Plan

The employees and trade unions have been informed and the participation councils involved have been asked for advice. The Social Plan of FrieslandCampina will apply to employees with employment agreements for an indefinite time in the Netherlands. FrieslandCampina will support the employees involved in finding new jobs within or outside FrieslandCampina.