The intended restructuring particularly affects the production and support services of PURAC biochem and Purac glucochem, and anticipates the loss of around 65 jobs.
The CSM subsidiary also has sites in Spain, Brazil and the US, and is a global market leader in the production of lactic acid, lactic acid derivatives and gluconates. It has an annual turnover of €270m.
"The decision is being made in order to improve efficiency and increase profitability. Production levels will not be affected," CSM communications manager Marjolein Moerer told BakeryAndSnacks.com.
The move comes as a result of CSM's restructuring plans, announced last year, that are expected to bring benefits of €50m in net savings for the firm over the next two or three years.
Tight competition for bakery supplies together with lower sales in the artisan segment have had a negative impact on the company's turnover, contributing to disappointing results for CSM Baking Supplies Europe in the first half of 2004.
Earlier this month, the firm announced the closure of its BakeMark sales office in Finland, and last month sold its operations of BakeMark Sweden to Accent Equity Partners for €8.75m.
CSM claims to have a 12 per cent share of the European bakery ingredients and products market. The bakery ingredients unit, which covers a wide range of products including lactic acids and food preservatives sold mainly under the Purac brand, saw a slight drop in turnover for the first half of this year to €138.9m.