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Updating the structure in Sweden

Press Release   •   Oct 06, 2003 11:05 CEST

Following a review, Arla Foods’ Sweden Division proposes that more customer orders be handled electronically. If implemented, the proposal would affect 60 sales employees and 30 staff within order processing.

“The proposal would result in an organisation structure which would meet our customers’ future requirements,” explained Sales Director, Anders Svensson, Sweden Division.
The move reflects the spreading internationalisation which, in recent years, has also impacted on the Swedish retail sector. As more cost-conscious buyers, own label products and joint purchasing organisations are emerging in the market place, food producers must be better prepared for increasing competition and for working with cross-border partners.

The 90 jobs under threat are included in the 600 jobs likely to go over the next three years. The relevant unions have been informed of the proposals.
Anders Svensson believes that the proposed restructuring is urgent and should be in place by next summer.

Arla Foods’ production of milk, cream and other milk-based products is currently being subjected to an internal evaluation aimed at rationalising the production structure.
The process will affect the dairies in Gothenburg, Jönköping, Kallhäll, Karlskrona, Linköping and Örebro.
The production of speciality products such as fruit yoghurt and cooking products as well as Sweden Division’s distribution are not part of the evalution.
Arla Foods’ Supervisory Board is expected to consider the evaluation in January 2004.