Dutch Lady Milk Industries to optimise dairy production operations, company says business remains solid
29 Nov 2022
Dutch Lady Milk Industries Bhd (DLMI) has announced the optimisation of its dairy production operations, which will see its milk powder operations in Petaling Jaya discontinued.
Its milk powder operations 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 long-term 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.
Ramjeet said besides monetary compensation, DLMI is bringing in the right experts to give the impacted employees coaching and workshops on financial wellness, entrepreneurship as well as digital businesses to prepare them for careers after they leave the company.
“These are among the initiatives DLMI is putting in place to help the affected employees make the transition,” she added.
For those who are moving with DLMI from its current operations in Petaling Jaya to Bandar Enstek, there will also be transition and relocation support, said Ramjeet.
There will also be upskilling and reskilling of those moving to Bandar Enstek as it is envisioned as a high technology-based manufacturing plant.
“We will also be working with the Negeri Sembilan government to explore housing and schooling options for those who relocate. They will also be shuttle services from strategic locations here,” she continued.
“The business model at DLMI remains unchanged, stable, and solid. We have to make decisions that look into the overall commercial considerations for the long-term in order to continue winning in the market,” she said.
DLMI is committed to providing high-quality, halal, and affordable nutritious products long into the future with its impending move to Bandar Enstek.
“With the implementation of Industry 4.0 technology at the new manufacturing facility, DLMI strives to achieve operational excellence and efficiency to continue winning in Malaysia and future markets,” she added.
The adoption of new innovations will allow the organisation to meet its dairy production growth and immensely benefit the growing local dairy industry while improving the quality and volume of local raw milk production.
DLMI has been part of the Malaysian landscape since 1963 and has been part of its nation-building ever since and will continue this important role in the future, said Ramjeet.
“We continue to support the government’s health agenda, especially on the nutritional status of Malaysians and the country’s food security,” she added.