Dutch Lady Milk Industries to optimise dairy production operations

Dutch Lady Milk Industries Bhd (DLMI) has announced the optimisation of its dairy production operations, which will see its milk powder operation in Petaling Jaya discontinued. It will also not be carried out at the company’s new manufacturing facility in Bandar Enstek, Negeri Sembilan.

This move, however, does not impact the supply of milk powder products for the Malaysian market as it will be sourced from parent company Royal FrieslandCampina NV’s network in Asia which will continue to provide for the needs of the Malaysian market, its managing director Ramjeet Kaur Virik said.

Royal FrieslandCampina NV, a Dutch company, is one of the largest dairy cooperative companies in the world.

DLMI will also be discontinuing the production of some of its other lines in phases over the next two years starting on May 31, 2023, in the intended optimisation exercise, she said.

The intended optimisation is in line with the approach of FrieslandCampina to enhance business operations and shift to a more sustainable business model that drives focus, innovation, and efficiency for FrieslandCampina’s longterm strategic reasons and to continue to cater to consumers in the future.

“Unfortunately, as a result of this decision that we have taken, about 100 existing job roles will be impacted. These positions will not be required at our new facility at Bandar Enstek,” she revealed, adding that this will be done in phases starting from May 31, 2023, until up to the second quarter of 2024.

“DLMI as a company has about 600 employees and this optimisation impacts specific lines.

“We have multiple lines such as the liquid business and powder business.

“Many of our employees will continue their career journey with us at Bandar Enstek,” she said.

DLMI is investing RM540 million in the new facility in Bandar Enstek as a future hub for the liquid business in the region. The new facility will replace the current operations in Petaling Jaya.

Hence, the optimisation of the supply chain is going by product type, to ensure economies of scale and efficiency, she revealed.

“The 100 people are mainly from the powder plant and the optimisation of some other lines in phases in the next two years (starting May 31, 2023),” she told Bernama.

“We will honour our contractual obligations to help our impacted employees transition. DLMI is committed to supporting all our employees and ensuring business continuity,” she said. — Bernama