Germany's largest dairy processor DMK plans to close two of its factories as part of a restructuring plan, putting 156 jobs at risk.

The Strückhausen and Milchhof Magdeburg facilities have been earmarked for closure because of greater efficiency at other sites and insufficient milk volumes in the Magdeburg region.

As a result, 56 employees at Strückhausen and 59 at Magdeburg could lose their jobs. DMK, which has a total workforce of 5,657, said it aims to find solutions for employees affected.

By consolidating production, the overhaul will "lead to improved cost efficiency", the company said.

DMK managing director of operations Sönke Voss said the changes are necessary for the company's future profitability.

"It is a matter of urgent necessity to bundle our production competences and adapt the site structure to future developments in milk volume in order to secure cost leadership. This is the only way we can maintain our position in the fiercely contested global market and guarantee shareholders a competitive milk price over the long term."

In October DMK announced plans to merge with Dutch cheese maker DOC Kaas.