Nomad Foods Ltd., the London-based owner of the Findus brand in Sweden, announced plans to possibly close its Bjuv, Sweden, factory by the end of the year. The factory produces a range of vegetable and meal products for the retail and foodservice markets in Sweden, Denmark and Finland. A majority of production will move to the company’s Reken, Germany, factory, while the sales and marketing operations will relocate to Malmo, Sweden.

Nomad Foods acquired Iglo Group and Findus Group in of 2015, creating one of Europe’s largest frozen foods businesses, operating 11 factories in 17 countries across Europe.

“With 11 factories, we have excess manufacturing capacity and a duplication of production capabilities in our supply chain,” says Stefan Descheemaeker, chief executive officer of Nomad Foods. “As a result, it is in the long-term interests of the business to consolidate its operations and create a more efficient supply chain. Ensuring our business is competitive and is a key component of our ability to offer consumers the best possible products at the most affordable prices.”

“Subject to the favorable outcome of our consultations, we intend to close our factory in Bjuv and transfer its manufacturing volume to other sites within our business, which have excess capacity,” Descheemaeker adds. “We are thankful for our hard-working and committed employees at Bjuv, and want to make it clear that their performance was not a factor in this decision. We will do all we can to support them and through this transition.”

Should the factory close, the pea processing operation in Bjuv will also cease operations after the 2016 harvest. The closure of the Findus Helsingborg, Sweden, factory in the summer will continue as announced.