Beiersdorf finalises logistics restructuring

By Louise Prance

- Last updated on GMT

Related tags: Germany, Italy

Personal care giants Beiersdorf has finalised the realignment of
its logistics restructuring with the planned transfer of its
production/product groups from Italy to Spain, Germany and Poland.

The move, announced this week, comes as part of its on-going consumer supply chain organisation. The realignment began in November 2005 with the transfer of a product group from Hamburg to France, and since then the company has been continually moving branches across Europe. Beiersdorf stated its ultimate aim with the realignment is to achieve a 5.5 per cent slice of the global market for personal care products by the year 2010, with growth particularly focused on the markets of China, India, Brazil and Eastern Europe. The Italian branch of the company is located in Milan and generated revenue of €378m in 2006. However, the savings from the realignment are expected to amount to over €100m per annum and, according to the company, will be used for future product developments and in 'brand-building'. The move will no doubt help the company consolidate its position as the leading skin care manufacturer, helped by sales of the leading Nivea brand. However, the realignment and restructuring has led to some uncertainty about the loss of jobs due to the move. Initially all employees had moved over from the Hamburg site to Spain, but following the continued progress of the realignment across Europe the roles of some employees has become uncertain. Only a few of the 370 employees based at the Italian branch will be put in touch with other manufacturers who can offer similar job prospects - therefore leaving a great deal of uncertainty for many staff. This has been the incentive for the continued restructuring programme, which saw the company's soap factory in Hirtler acquired by Budelpack International, one of Europe's leading contract manufacturers earlier this year. Budelpack International said that it intends to "profit from the opportunity to manufacture products for other suppliers", allowing the Hirtler factory to achieve further growth.

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