Alfa Laval intends to close Groningen factory as part of $41m savings package

10-Nov-2014 - Last updated on 10-Nov-2014 at 10:21 GMT

Alfa Laval intends to close a facility in Groningen, as it restructures its European air heat exchanger business to ‘secure long-term competitiveness.’

The company anticipates it will close the site in the Netherlands by September 2015, affecting 90 employees. The manufacture of air heat exchangers for refrigeration applications will continue at existing sites in Italy, Poland and Finland.

A spokesperson for Alfa Laval told FoodProductionDaily.com, “With the new set up Alfa Laval will be able to keep its production capacity but in a more concentrated way.

“Alfa Laval has thoroughly investigated several alternatives but the choice [of closure] was Groningen. Groningen has played a major role in the success of the company: however, concentrating the European manufacturing of air refrigeration products to Italy, Poland and Finland is beneficial from a cost perspective and provides closeness to existing and developing markets.

“Alfa Laval intends to move the Industrial cooler range currently produced in Groningen to Alonte [Italy]. The commercial cooler range currently produced in Alonte will be moved to Alfa Lavals’ site in Krakow.

“It is too early to give any details about the impact on this change as we have just started the process.”

Alfa Laval says it will now start negotiations with labour organizations and other concerned parties in Groningen, adding it will work to minimize the impact on affected employees.

The restructuring is part of a 300m SEK ($41m) package of savings, announced in Alfa Laval’s third-quarter report.