FrieslandCampina has announced it is to close its Den Hollander Food cheese packaging plant in Lochem, Netherlands, a move that sees 139 jobs axed.
The company said it was transferring the plant activity to other plants in Wolvega and Leerdam.
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A spokesperson for FrieslandCampina said the move aimed to make it more competitive in a market where there is "continuous price competition between suppliers".
The spokesperson added: "By cutting costs and capitalising on the need for new packaging concepts FrieslandCampina wants to improve its competitive position on the growing European market for sliced and pre-packed cheese. By consolidating our cheese packaging activities we can reduce cost…The plants in Wolvega and Leerdam offer extended possibilities to handle a greater variety of cheese packaging formats for both the European and the international markets."
The Lochem plant is expected to close in 2016. A EUR19m (US$20.2m) investment will be made in setting up new packaging lines in Wolvega and Leerdam and to accommodate the relocation of packaging lines from Lochem.
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