Lactalis to shut down another dairy plant in Romania

FRANCE – French dairy giant Lactalis has announced plans to close a factory in Miercurea Ciuc in Harghita County, eastern Transylvania.

This facility was acquired in the 2016 purchase of Covalact, and its closure will result in the loss of approximately 95 jobs.

This comes after the company outlined a new strategy to concentrate its investments in its remaining four Romanian sites in Oiejdea, Sfantu Gheorghe, Campulung Moldovenesc, and Tunari.

“This new stage in organizing our activity is part of Lactalis Group’s long-term strategy to consolidate investments and develop its businesses in Romania,” Onur Barim, the general manager of Lactalis’ operations in Romania, stated.

We have invested over €60 million in the last five years in Romania and have planned investments of over €13 million for the current year. These investments will allow us to be more competitive in the market and further diversify our product portfolios for the final benefit of Romanian consumers.”

In 2020, Lactalis also shut down two plants in Romania located in Floreni and Vatra Dornei, sites acquired in a 2008 deal for Dorna Lactate, marking its entry into the country.

The Covalact acquisition was reportedly valued at around €40 million ($42.8 million today), and before this, Lactalis had also acquired the Romanian dairy business Albalact.

Lactalis markets several international brands in Romania, including President, Galbani, Leerdammer, and Parmalat, as well as local lines like LaDorna, Covalact, and Bardezzi.

In April, Lactalis announced plans to close a yogurt and desserts site in Australia and to sell a nearby warehouse in South Brisbane.

Mal Carseldine, CEO of Lactalis Australia, noted that the sale was driven by a strategic decision to offload property surplus to requirements while affirming that operations at the factory on Montague Road would continue.

Additionally, Lactalis reported a 4.3% increase in turnover to €29.5 billion for 2023 despite facing challenges with weak profit performance due to pressure on volumes from private labels.

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