As cheese packing is increasingly taking place at the individual cheese dairies, Arla Foods’ Supervisory Board has decided to suspend operations at Arla Foods’ cheese warehouse and packing depot in Vejle and, at the same time, move sales and logistics from Vejle.

The decision will affect 463 employees. Vejle warehouse and packing depot will close by May 2006 and production will be transferred to the dairies in Taulov, Nr. Vium and Hjørring. Rationalisation benefits are expected to accrue within 2½ years. The closure is justified by the demands for further efficiency measures and lower processing costs.

“The packing function in Vejle dates back to the time when our dairy structure was characterised by many small dairies,” says Production Director Niels Lange Jørgensen, Production Division. “Our dairies are now so large that it makes more sense to pack cheese on the spot and transport it directly to the multiples’ central warehouses.”

Of the current packing volumes, approx. 26,000 tons per year, half will be moved to Taulov Dairy while the rest will go to Nr. Vium Dairy in West Jutland and Hjørring Dairy.

The closure of Vejle Cheese Warehouse and Packing Depot enables the Denmark Division to gather sales and administration for the Danish market with the other departments in Viby, near Århus.

These changes will take place by the summer of 2006. Sales and logistics in Vejle employ 198 people of whom 165 sales and administrative staff will work in Viby. It has not yet been decided where the remaining employees will be located.