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More than 1,000 jobs to go - 17 dairies to close

Press Release   •   Jun 27, 2001 17:15 CEST

If the new structure is fully implemented, approx. 700 of a total of 18,600 jobs will disappear - 380 in Denmark and 324 in Sweden. These figures, however, comprise 1,050 jobs at dairies marked for closure whilst approx. 350 new jobs will be created at dairies which will be extended. Staff at the affected dairies were informed of these plans on Wednesday morning.

New structure according to plan

 17 dairies to close
Investments in modern production facilities totalling DKK 2.3 billion will, according to the plan, result in a doubling of the one year-old Taulov Dairy in Denmark. The dairy currently produces 30,000 tons yellow cheese per year, a figure which will rise to 60,000 tons following the envisaged extension. Together with, for example, plans for building a new powder factory in Sweden – its location has yet to be decided – such significant investments will mean extensive changes to the Group’s production structure.

The decision to double capacity at Taulov Dairy will affect the cheese dairies at Tistrup, Glejbjerg, Vellev, Klovborg and Aars, which are all expected to close when the expansion programme at Taulov has been completed.

At the same time, production of speciality cheese will centre on a few plants. According to the plan, production of blue mould cheese will be centred on Høgelund Dairy while Grenå Dairy is expected to be closed. Troldhede Dairy will be expanded to accommodate the entire white mould production. In Sweden, production of rindless cheese will be centred at Falkenberg and Götene, while the production of large, round cheese will take place at Kalmar. Rødkærsbro Dairy will become the centre for mozzarella production and the production of small, round havarti-type cheeses will be concentrated at Falkenberg and Nr. Vium.

Production of butter and spreadable products in Sweden will be centred at Götene and Visby while that in Denmark will be concentrated at Holstebro.

Depending on the result of more detailed analysis, the following cheese and butter dairies are expected to close over the next few years: Varde, Farsø, Snejbjerg, Stånga, Åseda, Borgholm and Västervik. According to the plan, production of butter at the dairy in Gøteborg will be discontinued, although the dairy’s production of liquid milk will continue.

 

New powder factory
The new powder factory in Sweden is one of the reasons for the extensive structural changes in both Sweden and Denmark. In Denmark, production at the plant in Kjersing will be shut down, while Akafa and Arinco will be modernised. The whey processing plant at Mjölby will be closed as will Kimstad. Kalmar Dairy, which is likely to be expanded to provide more cheese capacity, will lose its powder production. The same will be the case in Falkenberg where production of yellow cheese continues.

Liquid milk
As extensive changes have already taken place to liquid milk production in Denmark following the merger with Kløver Mælk, the new plan does not envisage major changes to liquid milk production in Denmark. However, there are important changes in Sweden.

While Göteborg Dairy will continue as a liquid milk dairy, Skövde Dairy’s milk production will cease. The dairy will, however, produce cottage cheese for the Danish and Swedish market. Production of liquid milk at Linköping Dairy will cease, but the dairy will subsequently produce more yoghurt. The liquid milk dairy in Halmstad will be closed.

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