Fruit and vegetable processor Greenyard Foods has said it hopes to increase efficiency at its frozen unit, Pinguin, by entering into a deal Germany with local food group KTG Agrar.

The deal would see KTG Agrar take “operational leadership” of the deep-frozen vegetable activities of Greenyard’s German facility in Manschnow.

Greenyard will rent the facility to KTG Agrar, who will take over responsibility for personnel at the site. KTG Agrar, who already operate a frozen facility in Ringleben, will produce the Franzel frozen food brand in Manschenow.

“The strategy of Greenyard Foods is focused on the optimization of its production units and to improve the efficiency within the group. The signing of this principle agreement is a further step forward in this optimization within the deep-frozen division Pinguin,” Greenyard said.

Greenyard is the new name for the Belgium-based group that was called PinguinLutosa until the sale of potato business Lutosa to McCain Foods earlier this year.