Dairy giant Danone has announced that the company will be closing its dairy plant in Ochsenfurt, Germany, by Q4 2026.
According to sources, the decision stems from a restructuring plan that the company has been carrying out in Germany
Danone is said to have invested in the plant consistently for 15 years, including in 2019 when the firm upgraded the factory in a bid to improve efficiency. Despite the investments, the plant has reportedly been affected by consumer behaviour shifts, low-capacity utilisation and a rise in operational costs.
“There is less consumer demand for the locally manufactured products and high-potential Danone products cannot be produced locally”, commented Richard Trechman, managing director of Danone DACH.
The decision to close the factory will affect around 230 employees.
Source: FoodBev