Friesland cuts back Frico and sets out on acquisition trail

Following initial reports in last months issue of DII, Netherlands-based Friesland Coberco Dairy Foods has decided to close six of its 19 Frico cheesemaking plants. Factories at Elsloo and Vollenhove will cease to operate from next July, plants at Balk and Wierden will shut in January 2000, and sites at Markelo and St Nicolaasga will close six months later.
Friesland says the plants chosen for closure were found by a study to offer insufficient growth potential. The work currently undertaken by these factories will be transferred to alternative locations. As a result, there is to be significant investment in adaptation and expansion at Dronrijp, Gerkes- klooster, Marum and Workum.
Meanwhile, Friesland and fellow Dutch firm Hoogwegt are discussing a potential acquisition by Friesland of Hoogwegts shares in three dairy operations. The two companies are also negotiating a possible partnership in the area of dairy commodities sales.
The companies at the centre of the buyout talks are Zuivelfabriek De Kievit, Frisian Prote