Danone to Close German Dairy Plant Amid Cost Pressures
Source: dairynews.today
Danone announces the closure of its dairy plant in Ochsenfurt, Germany, due to high production costs and inefficiencies, affecting approximately 230 jobs.
Danone has revealed plans to shut its dairy plant in Ochsenfurt, Germany by the final quarter of next year. The decision stems from high production costs and the plant's inability to operate at full capacity.
This move will impact around 230 jobs. The production costs at the Ochsenfurt site are reportedly above the average for other Danone plants across Europe, compounded by years of declining capacity utilization which is expected to reach only half of the 2019 levels by 2024.
Richard Trechman, Managing Director for Danone's operations in Germany, stated the plant is unsustainable in the current market environment, citing reduced local consumer demand and the inability to locally produce Danone's high-potential products.
The plant currently manufactures dairy products, desserts, and high-protein puddings. While Danone remains committed to maintaining its manufacturing presence in Germany, it is planning significant investments in its Fulda site, one of its largest globally, which serves over 70 countries.
The Fulda facility focuses on specialized products such as baby formula and medical nutrition, with the company planning annual investments in high-tech production capacities to strengthen its role in Danone's global strategy.
Additionally, Danone is considering offering retraining opportunities at the Fulda site for employees affected by the Ochsenfurt plant closure.
This move will impact around 230 jobs. The production costs at the Ochsenfurt site are reportedly above the average for other Danone plants across Europe, compounded by years of declining capacity utilization which is expected to reach only half of the 2019 levels by 2024.
Richard Trechman, Managing Director for Danone's operations in Germany, stated the plant is unsustainable in the current market environment, citing reduced local consumer demand and the inability to locally produce Danone's high-potential products.
The plant currently manufactures dairy products, desserts, and high-protein puddings. While Danone remains committed to maintaining its manufacturing presence in Germany, it is planning significant investments in its Fulda site, one of its largest globally, which serves over 70 countries.
The Fulda facility focuses on specialized products such as baby formula and medical nutrition, with the company planning annual investments in high-tech production capacities to strengthen its role in Danone's global strategy.
Additionally, Danone is considering offering retraining opportunities at the Fulda site for employees affected by the Ochsenfurt plant closure.
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