Diemen 2005-02-22 - CSM is reorganizing the activities of its French subsidiary, Délices de la Tour, in order to reinforce its position and market share (18%) in France. The move is part of CSM's strategy to improve its profitability through Restructuring, Divestment and Growth. One element of this is a zero-tolerance approach to loss-making activities.
The measures now being taken are in line with earlier announcements regarding the reinforcement of CSM’s strategic core activities in bakery products and food ingredients.
Délices de la Tour (DLT) is to concentrate on the production, development and sale of premium frozen dough products, such as special breads (stone-oven baked bread) and viennoiserie (croissants and brioches) and beignets. The bulk production of frozen baguettes will end. In addition, all logistical activities will be outsourced.
DLT plans to concentrate production in Le Mans and at Maubeuge Quick Pain. DLT has begun negotiations with the local trade unions and staff representative bodies regarding the closure of the Delicefood plant in Maubeuge, the production facility in Thoiry and the warehousing and distribution activities in Petit Couronne. The measures will affect, on balance, approximately 200 jobs. The intended concentration of the production will eventually lead to the creation of around 60 new jobs in Le Mans and Maubeuge Quick Pain.
CSM expects that, as a result of this reorganization, the heavily loss-making Délices de la Tour will already return to break even in the course of this year.
CSM will charge the sum of approximately EUR 20 million to its 2005 results to cover the asset write-off and the costs of restructuring. It expects the reorganization to be completed by the end of 2005.