BELGIUM –Dutch dairy company Royal A-ware has agreed to buy FrieslandCampina’s milk powder towers in Aalter, Belgium in an effort to expand its dairy portifolio.

With roots stretching back to 1890, Royal A-ware is a traditional family-owned food company that offers a range of products in the cream, cheese and fresh dairy categories.

As a result of the acquisition, Royal A-ware intends to take over the milk powder production of the Aalter plant – which reportedly has a capacity of approximately 45,000 tons – from FrieslandCampina.

In a statement, Royal A-ware said that it intends to invest in the plant to effectively respond to customer demand.

Last year, the Royal A-ware entered into an agreement with FrieslandCampina for the production and supply of mozzarella cheese.

As part of the deal, FrieslandCampina agreed to supply milk and be responsible for the sale of the mozzarella, while Royal A-ware would take care of the processing of the milk and cheese production in a facility in Heerenveen, the Netherlands.

Following the transaction, FrieslandCampina will continue its production of consumer dairy in Aalter and will continue with its planned investments.

The announcement of the sale of the milk towers however, marks another move in the company’s ongoing restructuring strategy launched two years ago.

The strategy dubbed, “Our Purpose, Our Plan,” aims to further improve the dairy firm’s network while maintaining maximum milk processing, increased value creation and cost optimisation.

In line with this restructuring strategy, FrieslandCampina has also revealed intentions to close its Yoko Cheese packaging facility in Genk, Belgium.

The intended Belgium closure follows an earlier announcement by FrieslandCampuna that it would discontinue powder production at its production plants in Dronrijp and Gerkesklooster.

Back at Aalter, the 40 employees at the milk powder towers are expected tp switch to Royal A-ware upon conclusion of a final agreement between the two parties.

The intended acquisition, which is subject to customary conditions, is expected to be completed before the end of the first quarter of 2021.

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE