AAK has entered formal negotiations regarding closure of its plant in Merksem, Belgium. The closure is expected to cause non-recurring costs of SEK 304 million.
The production site in Merksem, Belgium, which employs approximately 100 people, is predominantly a bakery fats plant, mainly producing margarines and shortenings for the industrial market in continental Europe. The proposed consolidation implies a transfer of production from Merksem to AAK’s sites in Hull, United Kingdom and Zaandijk, the Netherlands, after which the site in Merksem would be closed.
– The proposed production consolidation would optimize our Bakery segment in line with our portfolio strategy, Johan Westman, President and CEO, AAK Group, says in a press release and adds:
– We will maintain our strong presence in the European industrial bakery market and continue to support our customers with the same high level of dedication and service.
The restructuring is expected to cause non-recurring costs of SEK 304 million, for which a provision will be made in the second quarter. SEK 203 million of this is a non-cash flow impact. A closure of the site in Merksem would lead to annual cost reductions and productivity gains of approximately SEK 51 million, expected to reach full run rate by the end of 2022.
More information and further comments will be provided in connection with the release of AAK’s interim report for the second quarter on July 16, 2021.
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