The Netherlands-based company has announced its German subsidiary BakeMark Deutschland will get €19m to expand the production capacity for frozen bakery products at its Delmenhorst plant, with the new facilities scheduled to be supplying key European markets, particularly Germany, by early 2007.
Marjolein Moerer, communications manager for CSM told FoodNavigator.com that the company anticipates significant growth in the American style bakery products sector.
"The fact that we are investing in the American style bakery products is part of are new strategy and this is a market segment in which we foresee more growth," she said.
This measure is in line with previous announcements regarding the reinforcement of CSM's market positions and organisations and is part of what CSM calls its worldwide 3S program (a Strong company, a Sharp team, and a Solid performance).
The 3S program has already led to many restructuring measures including, so far in 2006, reorganisations in the Netherlands, France, Germany and the UK.
In February for example, CSM announced its plans to sell its European sugar division in order to concentrate on high value ingredients. The company felt that CSM Sugar could not operate competitively on its own once the new EU sugar regime came into force in July 2006.
Moerer refused to comment on the progress of the sugar division sale, but confirmed that it was not yet sold.
Net sales from continuing operations decreased last year by 4.2 per cent to €2,618m, while operating result from continuing operations before exceptional items amounted to €169.1m, a decrease of 12 per cent.
These figures are a symptom of the major upheaval CSM has experienced in some key sectors hence the restructuring. CSM chief executive Gerard Hoetmer recently said that the streamlining initiative in place could bring total savings of up to €55 m, of which half will contribute directly to the operating result.