Olympia Herfelingen Dairy Shuts Down, Putting 168 Jobs at Risk

Herfelingen (Eurotoday) – Dutch dairy company Royal A-ware plans to shut down the long-established Olympia dairy factory in Herfelingen, Flemish Brabant, Belgium, citing outdated infrastructure. The closure threatens 168 jobs at the facility, which has been in operation since 1954.

After 70 years of uninterrupted activity, the Olympia dairy factory will permanently close its doors. Royal A-ware, which acquired the Belgian dairy producer in 2022, has concluded that the plant is no longer viable due to obsolete equipment that hinders modern, efficient production. As a result, 168 employees now face job loss.

Despite Olympia’s deep roots in the dairy-rich Pajottenland region and its long-standing significance since its establishment in 1954, financial struggles plagued the company. Royal A-ware had invested in upkeep and adjusted the organizational structure since acquiring Olympia, but ultimately determined that further investment would not be financially feasible.

“Unfortunately, too many of the installations and infrastructure are so outdated that complete new construction is needed to meet current and future efficiency and quality requirements. The investments that this requires are not economically justifiable,”

the company stated.

Olympia has long been a fixture in the community. Herfelingen Mayor Kris Poelaert (CD&V) described the closure as a major loss for the region:

“First and foremost, I want to express my condolences to all 168 employees who are being laid off. This is really drastic for those people, but also for other companies and suppliers. Moreover, Olympia was really embedded in the association life, they supported a lot of activities.”

Olympia’s history dates back to 1946, when the Van Impe family acquired the Saica butter factory, later rebranding it in 1954 as Zuivelfabriek van Herfelingen. In 1991, Kamiel Van Impe and his sons Marc and Luc constructed a modern facility along the Steenweg op Asse to streamline production and support international expansion. A dedicated dessert production department was added in 2003.

Why is the Olympia dairy factory closing?

Having grown from a local butter plant into a key dairy player in Belgium, Olympia underwent significant developments between 1946 and the early 2000s. It expanded to meet global demand and introduced new product lines, including desserts. However, after recovering from a 2012 fire and implementing sustainable packaging, the company hit financial hardship in 2018. Dutch dairy giant Royal A-ware took over in 2022, hoping to revitalize the plant.

Ultimately, Royal A-ware concluded that upgrading the aging infrastructure would require a full rebuild, an investment deemed economically unsustainable. The plant’s closure will not only impact its 168 employees but also reverberate through the Pajottenland’s business community and social fabric. Social consultations between unions and workers are expected to take place to discuss the future of the site.