Smilde Bakery to close plant and shift production

By Oliver Nieburg

- Last updated on GMT

Related tags Europe

Smilde bakery wants to grow in the US, UK Eastern Europe and Asia
Smilde bakery wants to grow in the US, UK Eastern Europe and Asia
Smilde Bakery plans to close its Mijdrecht factory in the Netherlands and will expand production at its Edam plant to enable it to grow share in international markets.

Alex Kruiter, managing director of Smilde Bakery, told “We have decided to have a strategic focus on innovation.”

“…We are not able to invest a large sum of money in two plants so we have decided to focus our investment in one plant.”

He said that Smilde’s innovation drive was designed to help it grow share internationally. The company has pinpointed the US, UK, Eastern Europe and Asia as potential markets, said Kruiter.

Smilde currently produces its patisserie, snacks and seasonal pastries at its two Netherlands facilities and has sales offices in the Netherlands, Belgium, Germany and the UK.

Relocation offered

Kruiter said that all 50 employees at the Mijdrecht facility would be offered to relocate to the Edam factory.

Smilde plans to add two new product lines at its Edam factory over the next year to compensate for the Mijdrecht site closure.

He said the project would cost a few million and would be complete by early 2014.

Kruiter said that the full volume from the Mijdrecht may not be transferrable and Smilde could look to outsource some production.

Demand and input costs

Asked if the closure meant bakery demand was falling, Kruiter said: “In Europe, it’s not easy due to rising raw material prices.”

He said that the cost of eggs, vegetable oils and dairy had all risen and had put pressure on manufacturers.

Smilde Bakery, part of the Royal Smilde group, employs around 250 people and produces products for the professional bakeries, industrial bakeries, foodservice, retail and the food industry.

Its brands include Pruvé, Baguette de France, NonStop! And Van Welzen.

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