Milcobel announces intention closure of drinks production facility in Schoten, Belgium

Today, the management of Milcobel has announced its intention to close its milk production facility in Schoten, Belgium, on the occasion of the Works Council. This would result in a discontinuation of the in-house production of milk drinks, and the related support functions. The outsourced business of milk drinks in glass bottles, commercialized under the INZA brand, will not be impacted.

This declaration of intent is part of the Transformation project initiated at the beginning of 2020 which examines potential improvements and savings with the aim of further strengthening the position and profitability of our cooperative and increasing the milk price for our member dairy farmers.

Milcobel's Drinks business has been loss-making for years. The production plant in Schoten is outdated and the investments that are necessary are not feasible due to the structurally declining market demand and the low / negative margins. In addition, the corona crisis has proven that more volume does not have a positive effect on profitability.

A possible closure of the Drinks department could lead to the loss of 167 jobs.

This intention to close is the start of the legally prescribed information and consultation procedure with the social partners.