FrieslandCampina Romania is set to relocate its cheese production unit in Carei and cheese packaging unit in Targu Mures by January next year, as part the consolidation of its cheese production operations in Baciu.
The development comes amid unfavorable market conditions, particularly the lack of consumer spending.
By relocating the cheese production plant, FrieslandCampina plans to improve its present and future efficiency and performance. Savings from the restructuring process will go towards its brand Napolact as well as for technological and product innovation.
The consolidation is part of the company's plans to adjust its business to the current market conditions for a sustainable long-term presence on the local market.
The consolidation process is estimated to be completed in January 2015. Currently, nearly 130 people are working in Carei.
Commenting on the move, FrieslandCampina Romania managing director Jan Willem Kivits said consolidating the cheese activities is part of the company's roadmap for Romania, which involves fundamentally improving its performance as its current production footprint is no longer sustainable.
"At present, our factory in Carei is operating at less than thirty percent of its capacity. This change is a necessary step in facing market challenges, preserving and investing in our local brands and ensuring business continuity," Kivits noted.