Job losses announced by VION

Dutch food and ingredients producer VION Food Group has announced rationalisation of its product range, closure of plants, streamlining of operations and more than 600 redundancies.

The actions are the outcome of a strategic review initiated by VION after the company announced disappointing results in 2011, and take account of its view of the likely economic conditions that will prevail in the coming years.

VION said that the strategic action plan for its three home markets – Germany, the Netherlands and the United Kingdom – is aimed at working more effectively and more efficiently. The objective is to further enhance the company’s productivity and product quality, while lowering costs.

Most measures and changes to the organisations in the Netherlands and Germany have now been identified.

Market-specific actions

The company said that the actions it will take will be specific to each market.

VION Food Netherlands will concentrate its pork activities. The activities of VION Druten will cease and will transfer to VION Boxtel and VION Groenlo. Retail production will largely be concentrated at VION Retail Groenlo.

Citing “market developments”, VION said that changes will be made to Encebe Vleeswaren’s production, range, and organisation.

These and other actions are expected to affect 340 jobs.

VION Food Germany is making changes to its structure to concentrate its activities and will “optimise” its product portfolio, focusing on attractive markets.

Changes to production processes and the product portfolio will, said the company, necessitate a reduction in the number of indirect and production employees at VION Wunstorf. As a result of the pig slaughtering activities being relocated to other sites and the product portfolio being decreased, the number of employees at VION Hilden will also have to be reduced.

By the end of 2012, employment will be discontinued for more than 290 employees, some 125 of whom work in support departments.

VION UK: fate not yet decided

VION said that the scope and complexity of the VION Food UK business requires more time and attention to carefully analyse the strategic options than was the case in the Netherlands and Germany. This analysis is currently being worked on in detail.

“The starting points of our strategic vision have been reconfirmed,” said CEO and chairman of the board Uwe Tillmann. “Achieving sustainable partnership relationships with strategic customers continues to be of prime importance, both now and in the future.”

“We continue to invest in these partnerships, as well as in product quality and effectiveness. The right balance and choices will determine our future success. We are further optimizing our production, logistics, ICT and sales, thus also reducing costs.”

“Unfortunately, this will not be possible without streamlining certain activities and making some redundancies,” he concluded. “In the interest of our customers, our suppliers, and our employees, we will now, more than ever, be committed to added value and our credo Passion for Better Food.”

VION's turnover is €9.5 billion and the company employs 26,500 staff.