Belgian Milcobel announced closure of its drinks department in Schoten and discontinue the operations at the plant there.
All these plans were announced at company’s works council which will be executed to discontinue other support services in Schoten and Bruges.
In first quarter of the year, company coined and tossed a ‘transformation project’ having net improvement in profitability and amelioration of the conditions of cooperatives with increase in incentives to the milk partners at the core of the project.
The initiative was taken with regard to look for more profit as the company reports suggest loss making ventures since past few years.
For ceasing operations at Schoten, company argued about less efficient and outdated facility there and unfeasibility to invest into the venture because of declining demand in the market.
Milcobel’s plant closure at Schoten will impose a loss of 167 jobs at the site.
The socialist union ABVV, cited by Flemish newspaper Het Nieuwsblad, said: “The employees react with dismay and ask why this should be done. We will have many questions about this decision during the consultation phase.”
Milcobel is now coalescing with all its social partners for legally sound consultations for the matter.
Earlier this year, the company named Erik De Cock as CEO ad interim, following the departure of Peter Koopmans ‘by mutual agreement’ at the end of December 2019.