Müller explained why it will close two plants in Germany by 2026
Source: The DairyNews
Theo Müller's acquisition of the majority of Royal FrieslandCampina's German dairy products business last year led to significant changes.
Now, the company has informed approximately 400 employees at the Heilbronn and Schefflenz sites that both locations will gradually cease operations by summer 2026.
The decision to shut down these sites stems from several factors outlined to employees. Firstly, the cost structures at the Heilbronn and Schefflenz facilities are deemed excessively high and lack competitiveness. Moreover, the Heilbronn site requires substantial investments, exacerbating the financial challenges. Secondly, in the fiercely competitive dairy products market, including the production of yogurts and desserts at the Heilbronn facility, significant volume growth and resulting cost efficiencies are not anticipated in the foreseeable future.
Cornelia Heiser, managing director overseeing the Landliebe business, stated, "A thorough economic analysis has revealed that, given these circumstances, the two production sites face significant challenges in transitioning from deep losses to profitability in the long run. We will integrate the product portfolio into other German locations within the group. We understand that this decision will create uncertainty among employees and will commence discussions with the works council promptly to seek socially acceptable solutions."
The decision to shut down these sites stems from several factors outlined to employees. Firstly, the cost structures at the Heilbronn and Schefflenz facilities are deemed excessively high and lack competitiveness. Moreover, the Heilbronn site requires substantial investments, exacerbating the financial challenges. Secondly, in the fiercely competitive dairy products market, including the production of yogurts and desserts at the Heilbronn facility, significant volume growth and resulting cost efficiencies are not anticipated in the foreseeable future.
Cornelia Heiser, managing director overseeing the Landliebe business, stated, "A thorough economic analysis has revealed that, given these circumstances, the two production sites face significant challenges in transitioning from deep losses to profitability in the long run. We will integrate the product portfolio into other German locations within the group. We understand that this decision will create uncertainty among employees and will commence discussions with the works council promptly to seek socially acceptable solutions."
