THE NETHERLANDS – Dairy group Friesland Coberco is to close its facilities in Assen and Oosterwolde.

The plants currently produce Frico Cheese but these activities will be moved to other plants at Bedum, Gerkesklooster, Marum, Workum and Dronrijp by mid-2005.
Friesland Coberco stated that these changes would increase economies of scale and flexibility of production. By manufacturing different types and sizes of cheese at a single facility, the company claims that it will be able to respond better to the demands of the market.

The closure of the two plants will lead to 155 job losses but the company claims 71 new jobs will be created at the other facilities. The proposed reorganisation is in line with Frico Cheese’s strategy to improve profitability by developing, producing and marketing branded cheeses with high added value and by lowering costs through economies of scale and greater flexibility.