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Friesland to shut down Békéscsaba plant

Dutch dairy company Friesland announced late on Thursday that it will shut down its dairy plant in Békéscsaba southeast Hungary on March 1, 2006. Friesland's Hungarian unit, which controls a little less than a quarter of the market, will concentrate production at its dairy in Gyöngyös, northeast Hungary. The closure of the dairy in Békéscsaba, necessary because of market trends, will not affect the company's output, according to the announcement.
Friesland has spent more than Ft 3.5 billion to develop its dairies in Hungary over the past three years. The company's sales in Hungary approached Ft 60 billion in 2004, and it purchased almost 350 million liters of milk from Hungarian producers.