Closures have not been ruled out in Vion restructure

By Georgi Gyton

- Last updated on GMT

Herkemij said five out of its six business units were doing well
Herkemij said five out of its six business units were doing well
Vion Food has said the possibility of closing a number of its German sites has not been excluded from plans to make the business more efficient.

The firm’s chief executive Michiel Herkemij said a focus for Vion, moving forward, would be cost reduction and investment at its operating sites, in order to facilitate more sustainable production.

Vion hopes to achieve this by better co-operation between locations, a more coordinated approach to purchasing and a more efficient supply chain.

Over the next two years Vion will also invest between €100m-€150m in the business’ production and processing operations, which it said would partly be funded by cost reductions. However, the possibility of bank financing was also being investigated.

Herkemij said: "We have gone through a turbulent period, and it is necessary to thoroughly reorganise the company. Because of the actions already taken, Vion is, at this moment, financially stable again and our debts have been eradicated.

"We have built a strong foundation for the future, and dare to look forward again, and focus on the future. The main aim is to restore the company to profitability." 

He revealed that five out of its six business units were doing well, not taking into account its Dutch pig slaughterhouse and related chain activities that require improvements.

Increasing exports to Asia was also a key focus, as was the start of exports to Africa, he said.

Earlier this month Vion expanded its supervisory board, with the addition of Ronald Lotgerink.

He is currently chief executive of Zwanenberg Food Group, one of the leading producers and exporters of meat and canned meat products in Europe, and will primarily focus on the financial aspects of the company and on market conditions within the meat sector.

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