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Hochdorf said its Bimbosan infant-formula business will take over a plant formerly producing wheat germ for the Swiss baby-food products firm from the end of January.

The site in the municipality of Hochdorf discontinued production of wheat germ after the company last year switched its focus to concentrate on the manufacture of baby foods and dairy ingredients, a decision accompanied by the sale of a number of assets, including its majority holding in Pharmalys, a subsidiary it acquired in 2016.

Hochdorf said this morning (23 September) the facility will be used for the packaging and shipping of Bimbosan formula and also for additional storage space. Bimbosan will now shift its headquarters from Welschenrohr to Hochdorf, a move that will result in the loss of ten jobs in production and logistics, with the affected employees to be offered alternative positions within the group. 

Bimbosan products will also continue to be manufactured at another plant in Sulgen. Once the transfer has taken place, the plant at Welschenrohr will be sold, it said.

Hochdorf expects the transfer to lead to “considerable synergies in collaboration as well as significant cost savings and more efficient processes”.

Dr. Peter Pfeilschifter, the CEO of Hochdorf, added: “Since the volume of production equipment to be moved is not large and we can free up external storage space, we expect annual cost savings of around one million Swiss francs. By bringing together the staff in charge of sales, marketing and internal administrative services, we expect to achieve increased collaboration efficiency, which is essential in a dynamic market environment.”

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By GlobalData

Pfeilschifter became the company’s permanent CEO in January this year having held the role on an interim basis from March 2019 through December following the departure of Thomas Eisenring.

“This set of measures allows for a strategic consolidation of the Bimbosan brand, which will thus be able to continue its development in its domestic market and achieve its positioning in international competition,” Pfeilschifter said.