New steps in recalibration business strategy - Ausnutria Netherlands closes factory in Ommen and adapts organization in Kampen

16-01-2024

Ausnutria intends to close its factory in Ommen. 79 jobs will thereby be lost in Ommen. In Kampen, Ausnutria is adapting the organization, which will result in the loss of 11 jobs and the creation of 4 new jobs. In addition, the work of 13 employees will be outsourced to an external party. Both proposed decisions are a result of changing market conditions and a recalibration of its business strategy. Ausnutria announced this to its employees today.

Tough decision Ommen
Ausnutria is aware of the enormous impact of the decision to close its factory in Ommen. Bart van der Meer, Executive Director of Ausnutria BV: “Ausnutria Ommen is a location with a lot of history. It is our oldest factory, which has meant a lot to the start and growth of the current Ausnutria organization. We understand that this news causes a lot of emotion among employees. It is a tough, but necessary decision.” Last year, Ausnutria began a recalibration of its business strategy and research into cost savings. A reorganization of the factory in Leeuwarden was then announced.

Overcapacity
Ausnutria is a manufacturer of infant formula. The most important sales market, China, is declining. Market conditions now have consequences for the factory in Ommen. Ommen's activities can be transferred to Kampen and Heerenveen.

Bart van der Meer: “In this difficult market and with the operationalization of our new factory in Heerenveen, our drying capacity is too large. In addition, the factory in Ommen no longer meets the requirements and wishes for a future-proof production process for infant formula - despite investments in recent years. When recalibrating the strategy, in addition to adjusting capacity, we also saw the need for cost savings and increased efficiency. Furthermore, sustainability and higher process reliability play a role in the increasingly higher quality requirements for the production of infant formula.”

Adjustment of Kampen organization
In Kampen, Ausnutria wants to produce more efficiently and simplify the organization. This will result in the loss of 11 jobs and the creation of 4 new jobs, which will first be offered to redundant employees. In addition, Ausnutria plans to outsource the work of 13 employees to a third party, which may mean that the employees can transfer to this new employer.

New drying tower Heerenveen
The construction of the new drying tower in Heerenveen will be completed early 2024. Bart van der Meer: “We started the construction of our new drying tower in Heerenveen in 2021, to ensure a sustainable expansion of our drying capacity. Against the backdrop of the challenging Chinese market, but encouraged by growing demand for goat's milk formula in the rest of the global market, this factory will be commercially operational by the end of this year. This factory will operate completely sustainable. After an extensive test phase, Heerenveen, together with the factory in Kampen, will take over the activities of the factory in Ommen.”

Support involved employees
The intention is to close the factory in Ommen at the end of 2024. The consequences of the reorganization will be further elaborated in the coming months. All proposed decisions are subject to advice from the (Central) Works Council. “Ausnutria wants to support all employees involved in this process. We continue to talk to our employees and aim to provide clarity about the exact and individual consequences as quickly yet carefully as possible. This has our full attention,” says Linsey Nijhuis – Pierik, HR Director.