Lieken was sold to Czech group Agrofert last year

Lieken was sold to Czech group Agrofert last year

Lieken, the German bakery group, is to close a factory in Essen as it pushes on with restructuring its business.

The company, which pasta giant Barilla sold to Czech food maker Agrofert last year, does not meet "contemporary and future market requirements". Around 200 staff reportedly work at the plant.

"Lieken is currently undergoing a large reorganisation process. We are investing in the future of our company with a three-digit million amount. In the course of the reorganization process we have to take a close look at our factories. A detailed analysis has shown that the factory in Essen does no longer correspond to the contemporary and future market requirements. Therefore, we decided to close the factory," the company told just-food.

Lieken said it could not provide a date for when the site will close. However, it added: "The whole reorganization process of our production should be finished within the next two to three years." The company is said to have 12 plants in Germany.

Lieken, which generates annual sales of over EUR700m (US$873.5m), owns the Golden Toast and Lieken Urkorn brands. It also supplies private-label products to retailers.