Dutch family-owned dairy company Royal A-ware intends to acquire FrieslandCampina’s milk powder towers in Aalter, Belgium.

With a production capacity of nearly 45,000t, the milk powder business unit currently has a workforce of 40 employees, who will be transferred to Royal A-ware, once both parties reach a final agreement.

The proposal to acquire the milk powder towers comes after FrieslandCampina announced its intent to discontinue the powder production at its plants in Dronrijp and Gerkesklooster, Netherlands.

Royal A-ware has expertise in producing, ripening, cutting and packaging cheese, cream and fresh dairy products.

If the deal materialises, the Dutch family-owned company intends to make further investment in the plant.

The intended sale will be in-line with FrieslandCampina’s strategy to further improve its network while continuing maximum milk processing, as well as increased value creation and cost optimisation.

FrieslandCampina will also continue production of consumer dairy in Aalter while focusing on its planned investments.

Completion of the intended divesture would be subject to the regular closing conditions, and the deal could conclude before the end of the first quarter of next year.

Last October, FrieslandCampina signed an agreement with Royal A-ware for mozzarella cheese production and delivery.

FrieslandCampina will supply milk from its member dairy farmers and oversee sale activities of mozzarella cheese.

Royal A-ware is responsible for the processing of milk and cheese production in a new location in Heerenveen, the Netherlands.