Czech Republic: Dr. Oetker to close production facility

Dr. Oetker, the Germany-based food multinational. has reportedly announced the closure of its sole manufacturing facility in the Czech Republic.

In a statement, the company reportedly said that the factory, located in Kladno, was unsuited to modern production demands as there was no possibility for it to be expanded.

Dr. Oetker will  continue to supply the Czech Republic retail and foodservice industries from outside the country, in particular from facilities in Hungary. It will also retain around 74 employees in administrative roles when the facility closes this year.

Commenting on the move, a company spokesperson said: “The situation on the retail market in which Dr. Oetker operates has changed significantly in recent years due to forced cost increases. Food manufacturers have faced increasing economic pressure and competition in recent years due to rising energy and raw material prices. To succeed in this environment, Dr. Oetker must constantly modernise its technology and optimise its organisation”.

Source: Just Food