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Milcobel - closure planned

Milcobel – closure deliberate

Belgian dairy cooperative Milcobel has introduced its intention to shut a home milk plant.

The power in Schoten, together with related assist companies there and in Bruges, is to be discontinued as a part of the corporate’s transformation undertaking instigated initially of this 12 months.

Some 167 jobs are impacted by the choice, which is topic to session.

In an announcement, Milcobel, Belgium’s largest dairy enterprise, stated: “Milcobel’s drinks enterprise has been loss-making for years. The manufacturing plant in Schoten could be very outdated and the investments which can be vital will not be possible because of the structurally declining market demand and the low/adverse margins. As well as, the coronavirus disaster has confirmed that extra quantity has no optimistic impact on profitability.”

Nonetheless, Milcobel stated the sale of consuming milk in glass packaging beneath the Inza model is not going to be affected by this determination as that’s produced elsewhere.

The co-op’s transformation undertaking is meant to result in the “doable enchancment and financial savings potential with the purpose of additional strengthening the place and profitability of the cooperative and growing the milk worth for the member dairy farmers”.

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