12 production plants to close
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- 07 April 2000
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The closure of Høng Dairy next year brings the total of closed or soon-to-be-closed production plants to 12 following last year's merger between MD Foods and Kløver Mælk. In addition, three terminals and Kløver Mælk's headquarters have also been shut down.
The impact of the closures on overall staff levels has not been calculated. The closed plants, however, employed a total of 970 people.
As a further consequence of MD Foods' mergers with Kløver and Arla, Grøndal Dairy will be sold off following demands from the Danish competition authorities.
Overall, two butter dairies, three liquid milk dairies, a fruit juice factory and six cheese dairies have been affected by the mergers.
While the merger with Kløver Mælk was based on a need for rationalisation, the Arla merger aims at meeting the increasing competitive challenges of the international marketplace.
Arla Foods is an international dairy company owned by 9,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.