The company is "not a big enough player on the market of semi-soft cheese for efficient adjustment to changes and preservation of competition," Ljubljanske mlekarne said in a press release.

Continuation of production in Kočevje would require "significant investment in production technology".

The semi-soft cheese segment will therefore be shifted to another company in the Lactalis group.

Employees in Kočevje will be offered to apply for vacancies at other Ljubljanske mlekarne locations and the group's locations in the region.

Despite the downsizing, the dairy plans to increase purchase of Slovenian milk by 5% this year as it ramps up production of fresh products for other members of the Lactalis group.

Ljubljanske mlekarne was acquired in 2012 by French dairy group Lactalis through its Croatian subsidiary Dukat.