Chiquita Fresh Europe president Michel Loeb has told Eurofruit Magazine the company expects to make a decision “before the end of this year” regarding a possible transfer of its European head office from its current location in Antwerp, Belgium, to the Swiss town of Rolle, 30km north-east of Geneva.
Reports in the German trade press at the end of last week revealed that Chiquita’s European directors had sent proposals to the Belgian authorities detailing plans to analyse the possible relocation of its European headquarters. Under Belgian law, the company is required to submit such information prior to any period of consultation on matters which might have potential implications for its Belgian employees.
“There’s nothing much to say besides the fact that we are considering a move, but no decision has been made as yet,” Mr Loeb confirmed. “We are investigating the possibility of a move away from Antwerp to Rolle in Switzerland and a consultation process has been initiated.”
While Chiquita declined to elaborate on the reasoning behind the proposed move, it is understood that an improved tax situation would enable the company to make significant savings and improve its profit margin in the face of markedly increased input costs.
Earlier this year, Chiquita said it expected “significantly higher industry costs, especially for items such as fuel and purchased raw product,” during 2008.
A leading London-based corporate tax lawyer told Newsline: “When you have a downward economic trend like the one we’re seeing at the moment, companies are always looking to lower their tax burden and reduce their costs.”
Meanwhile, investment group DCC has agreed to pay Fyffes E37.6m as part of a settlement in the long-running case over the company’s unlawful trading of shares in the fresh produce distributor eight years ago. Dublin’s High Court had earlier found DCC chief executive Jim Flavin responsible for the illegal sale of DCC’s stake in Fyffes in early 2000.
Separately, Ralph Hörstgen has been named as the newly appointed business director of Fyffes’ Rotterdam-based subsidiary Fyffes BV. Mr Hörstgen, who was managing director of Chiquita Germany for six years, will be responsible for the German, Swiss and Austrian markets.
Useful Links:
Chiquita (official website)
Rolle, Switzerland (Wikipedia)
