Agrofert is investing millions to “modernise” its German bakery business, Lieken, under a long-term corporate strategy through to 2030.

In a statement to Just Food, Lieken said the spending would amount to a “triple-digit million-euro” investment.

Of that total, about €70m ($81.2m) has already received approval. That funding includes support for expanding capacity at Lieken’s Wittenberg facility.

Details on individual locations and investment programmes will be announced in “due course”, the company said.

Lieken did say it is placing particular emphasis on its core product segments of toast, sandwich bread and sliced bread.

The programme will cover new production lines and upgrades to existing ones.

According to the company, the measures are intended to raise “efficiency, capacity, quality and sustainability”.

Lieken joined Agrofert’s portfolio in 2013 after the Czech food group bought the business from pasta giant Barilla.

The company markets products under the Golden Toast and Lieken Urkorn brands, while also producing private-label goods for retailers.

Lieken told Just Food the investment would allow it to direct resources toward segments where it has “extensive experience, strong production capabilities, well established brands and a strong position in the German retail market”.

“The aim is to strengthen our competitiveness, ensure reliable supply for our customers and create the conditions for sustainable and profitable growth,” it said.

Lieken also said the investment will support greater automation and “more efficient” production processes.

Asked if the investment would lead to the creation of new jobs, the company said: "At this stage, we are not making any statements regarding specific
employment effects."

The baker added it has established operational targets for future production capacity but would not provide details.