The Government has decided to remove customs duty on baker's yeast imports. Furthermore, Idun Industri must now meet new environmental requirements that entail a substantial increase in annual operating costs. Consequently, the Board of Directors of Idun Industri A.S has concluded that it is industrially correct to move baker's yeast production to Stockholm. Its sister company Jästbolaget has the capacity to take over production for the Norwegian market and fewer investments are required in Sweden.

 

"This move will strengthen our competitiveness and help to secure the workforce of approximately 150 man-years that we will continue to have in Norway," says Arne Løken, Managing Director of Idun Industri.

 

Baker's yeast production at Idun Industri will be phased out gradually and finally discontinued in the first half of 2005. In total, the company's workforce will be reduced by 26 man-years.

 

"We will take steps to ensure that as few employees as possible are dismissed. Employees who wish to help secure production during the phasing-out period will be offered special pay arrangements. We will discuss the situation with each employee and do our best to help them for instance find a new job," says Arne Løken. He regrets the uncertainty that the factory employees have experienced in the past few years.

 

Idun Industri will ensure that the relocation of its baker's yeast production causes no inconvenience to customers and consumers. Idun baker's yeast will continue to be produced and sold as before.

 

"Baker's yeast produced by Jästbolaget will have the same high quality as Idun's own baker's yeast. We have already tested this with a number of our customers. We will be spending more time with customers to assure their smooth transition to baker's yeast produced by Jästbolaget. Customers will continue to be served by Idun Industri's sales force, and the baker's yeast will be distributed from the same places as before. We are committed to maintaining our cutting-edge baker's yeast expertise," says Arne Løken.

 

Idun Industri A.S is Norway's leading supplier of baking ingredients to bakeries and other food manufacturing industries, and employs a workforce equivalent to 175 man-years. Its annual sales total NOK 475 million. Like Jästbolaget, the company is part of Orkla Food Ingredients.