Industrial group Tessenderlo on Thursday announced plans to restructure the gelatin factory of its subsidiary PB Leiner in Vilvoorde, with 106 jobs potentially at risk.
Tessenderlo also intends to close a second factory that currently employs 93 people in Treforest, UK.
In a press release, Tessenderlo highlighted the significant challenges facing European bone gelatin. Demand is decreasing in the Western world, the market is shifting to alternative products, and customers are moving to low-wage countries, putting pressure on pricing and cost structures.
The company expects that European bone gelatin will continue to face difficult market conditions.
"Given these ongoing challenges, combined with the need for substantial further investments to maintain efficient production, we believe the European bone gelatin business does not have a viable future," the company stated in its press release.
Tessenderlo noted that both bone and pork gelatin are produced in Vilvoorde, where around 300 persons work. CFO Miguel de Potter told Belga that the intention is to continue operations in Vilvoorde, albeit on a different scale.
The factory in Treforest, however, produces only bone gelatin.
With the announcement of the intention to restructure, Tessenderlo has begun the information and consultation process with employee representatives to analyse the possible options for the factories in Treforest and Vilvoorde.
"Although no final decision has been made, we regret that this announcement may bring uncertainty and concern for our people and the community in the coming period," Tessenderlo stated.
