Danisco plans restructuring for fragrance operation

- Last updated on GMT

Related tags: Management, Competition

Danisco has announced plans to restructure its fragrance plant in
Seillans, France. The restructuring, which will mean job cuts, is
due to the general recession in the fragrance market during the
past four years.

Danisco​ said that given the market conditions and the inconvenient location in respect of logistics, the company said it would optimizing synergies between the Seillans ansdComps plants, that would result in the loss of 26 jobs and the relocation of eight employees.

Stiff competition in the fragrance markets has hit most players in the industry, and has had a particularly hard-felt impact on European companies. This trend was reflected in the results of leading player Givaudan, who last week announced flat end of year results, which it blamed on stiff market competiton.

Danisco claims that the general state of the market was putting huge demands on all manufacturers.

To be a key, competitive market player Danisco will have to adapt its organisation and costs to the situation. Danisco Flavours' planned restructuring of the flavour and fragrance activities in France aims at restoring competitiveness in the fine fragrance field,' said managing director Germain Despres, Danisco Seillans - where a variety of natural ingredients are produced for fine perfumes.

The planned job reductions and streamlining will enable the Seillans plant to maintain its market share and regain some of the ground lost to rivals.

The restructuring of Danisco Seillans, which was formerly know as Calchauvet until a merger in 1999, forms part of the adjustment of Danisco Flavours to market conditions.

"In order to be a strong player and improve our position in the highly competitive fragrance market, Danisco Flavours aims at fewer, larger production and innovation facilities. This has previously resulted in restructuring measures in Spain, the UK, the Netherlands and latest in Sweden", explained Flemming Lyngholm, Danisco Flavours.

Related topics: Fragrance

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