Food and Beverage Business

Lactalis to close another dairy factory in Romania

French dairy giant Lactalis is making strategic changes in its operations in Romania. The company plans to close a factory in Miercurea Ciuc, Harghita County, impacting around 95 employees. However, Lactalis is set to invest in its remaining four sites in Oiejdea, Sfantu Gheorghe, Campulung Moldovensec, and Tunari. Onur Barim, the general manager of Lactalis’ business in Romania, highlighted the company’s long-term strategy to consolidate investments and enhance its operations in the country. The investments, totaling over €60m in the past five years and planned investments of €13m for the current year, aim to boost competitiveness and diversify product portfolios for the benefit of Romanian consumers.

In 2020, Lactalis had announced the closure of two other plants in Romania acquired through earlier deals, further shaping its presence in the country. The company’s portfolio in Romania includes international brands like President, Galbani, Leerdammer, and Parmalat, as well as local brands such as LaDorna, Covalact, and Bardezzi.

In addition to its activities in Romania, Lactalis recently announced plans to sell a warehouse near its factory in South Brisbane, Australia, as part of a strategic decision. Despite facing challenges like a decline in sales volumes and pressure from private label products, Lactalis reported a 4.3% increase in turnover in 2023. The company’s chairman, Emmanuel Besnier, highlighted a “weak” profit performance due to changing consumer behavior but noted that demand for Lactalis products remained strong, thanks to quality and affordability.

As Lactalis continues to adapt its operations in various markets, the company remains focused on aligning investments with its long-term growth strategy and delivering quality products to consumers worldwide.

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