Novozymes streamlines its supply chain activities in Denmark

Novozymes’ supply chain organisation is carrying out extensive process and efficiency improvements and is expected to be reduced by just over 40 positions over the next 18 months.

The changes are being made in order to maintain jobs in Denmark in the longer term.

Internal calculations show that Novozymes can reduce the costs of its supply chain considerably by carrying out process and efficiency improvements and investing in new technology. The changes will mean reductions in Copenhagen and Bagsvaerd and a small expansion in Kalundborg.

This is a long-term solution that will make it possible to maintain jobs in the supply chain in Denmark. A comparison of the savings from the planned process and efficiency improvements with the costs of moving the supply chain activities to countries with lower production costs shows that it can still be profitable to keep these activities in Denmark.

"We regret that in the short term this will affect employees and will of course do all that we can to help," says Peder Holk Nielsen, executive vice president, Sales & Marketing. The affected employees will be offered a favourable termination package including professional help in finding new work and financial compensation.

For the remaining employees the changes will mean better jobs as well as an improved working environment and working conditions in general resulting from less manual handling. The first employees are expected to leave the company around the turn of the year and the last in the third quarter of 2007.

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