Tessenderlo Group Restructures Operations, Putting 300 Jobs at Risk at Vilvoorde Gelatin Factory

Vilvoorde (Eurotoday): The Tessenderlo Group plans to restructure its gelatin factories in Vilvoorde and Treforest due to declining demand for bone gelatin in Europe. Approximately 300 jobs are at risk as the company faces competition from low-wage countries and plant-based alternatives. Significant investments are needed to maintain production amid these challenges.

The Tessenderlo Group has reported that the European bone gelatin market is struggling due to decreasing demand in Western countries like Europe and North America. Many consumers abandon animal-based products because of ethical, environmental, and health concerns. The popularity of plant-based alternatives, such as agar-agar and pectin, along with synthetic substitutes, has also reduced the need for traditional gelatin. Advancements in biotechnology are introducing new materials that compete with gelatin, adding more pressure on the industry.

What challenges does the European gelatin market face?

Another major challenge for the European gelatin market is that customers are shifting to low-wage countries where production costs are cheaper. As these regions expand their operations, European manufacturers face strong competition from these cost-effective supply chains. This has led to lower prices and increased pressure on local producers to cut costs while maintaining quality.

The company has announced that it expects the European bone gelatin business to continue struggling due to tough market conditions. They stated that significant investment is needed to keep production running efficiently, leading them to doubt the future of this business. In Vilvoorde, where 300 people work, they will continue producing pig gelatin alongside bone gelatin, but on a smaller scale. Meanwhile, the Treforest factory only makes bone gelatin. Tessenderlo Group has started discussions with employee representatives to explore options for both factories, acknowledging that this news may cause concern among workers and the local community.