New research centre for FrieslandCampina

FrieslandCampina, the world’s fifth-largest milk processor, has started construction of a EUR60 million R&D complex on the Wageningen University campus in the Netherlands. To be built over the next two years with the help of investment partner Hurks Vastgoedontwikkeling, the proposed Friesland Campina Innovation Centre will help realise the dairy coop’s strategy of continuous development of its consumer goods, ingredients and production processes, according to FrieslandCampina CEO Cees ‘t Hart.

The CEO says the complex will include 4,600 square metres of laboratories, plus over 6,000 square metres for testing new milk products and the latest in processing equipment ideas. On top of this will be another 7,000 square metres of offices for more than 400 FrieslandCampina personnel and scientists. Seen as an important addition to the dairy food development concept is a so-called Experience Centre where the dairy will welcome visitors and colleagues from all over the world for product tasting and testing before market launches.

The company has also improved its financing arrangement. The conditions of a EUR1 billion revolving credit facility have been amended and the term has been extended by two years to August 2015. FrieslandCampina has reached agreement with 14 banks about the revolving credit facility. Compared to the current facility, the conditions have been improved by reducing the interest surcharge and extending the term. The term of the facility has been extended by two years and now runs until August 2015. The size of the facility remains unchanged at EUR1 billion.

The amendment was possible as a result of the improved creditworthiness of the company and in spite of the market trends. Kees Gielen, chief financial officer of FrieslandCampina, says, “In spite of the current tough situation in the financial world, we have once again succeeded in improving our loan conditions. We are able to do this because of our healthy financial position and good performance.”