German dairy group Muller plans to invest up to EUR500m (US$535m) in building a new site to house the merged operations of four existing production plants for its domestic Homann deli meats unit, facilities that are set to close.
A Muller spokesperson told just-food today (21 April) the new site is scheduled to be operational by 2020.
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The move comes just over a year after Muller said it wanted to expand production at Homann.
A final decision on where the new site will be has not been made, despite considering sites “throughout Europe”, Muller said. “However, the favoured solution is Leppersdorf in Saxony, where Muller already operates the most modern dairy plant in Europe.”
Muller said the decision was necessary because Homann is facing “fierce competition in the delicatessen market” in addition to “insufficient development and synergy potentials” at the existing four plants at Dissen, Lintorf, Bottrop and Floh-Seligenthal.
However, Muller said: “It is important to stress that nothing will change in Dissen, Lintorf, Bottrop and Floh-Seligenthal until 2020. There will still be full employment and unlimited production.”
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By GlobalDataMuller said it was no longer possible to operate the four sites profitably. “The sites have lost their competitiveness and a solution to the existing logistical difficulties as well as modern and sustainable production can only arise from new construction.”
The company said it would negotiate with representatives of employees at the existing sites about future plans and “all employees will receive an offer to switch to the new production site in 2020”, the group said.
Homann produces meat and sausages as well as gourmet salads, fish, remoulades, spreads, dressings and spicy sauces. The company’s plants for its fish production and packing at Rogaetz and Sassnitz are not affected by the changes, Muller said.
