Calidad Pascual is selling its Gurb milk facility in Barcelona to family-owned peer Casa Tarradellas.

The Madrid-headquartered food and drinks business said Casa Tarradellas plans to convert the plant in Cataluña to mozzarella production to support its own pizza manufacturing operations.

Under recently promoted CEO César Vargas, Calidad Pascual revealed a business restructuring in January. The project, dubbed Aura, will see the company move from a centralised operating model to one of five independent units - dairy, hydration, coffee, international and distribution.

Calidad Pascual did not disclose the financial terms but said in a statement the agreement with Casa Tarradellas “aims to improve the long-term competitiveness of both companies”.

The sale of the Gurb plant fits within the Aura strategy amid what Calidad Pascual said was increasing “competitive pressure” and costs in the Spanish dairy market. Those factors require the need to “reinforce productivity and efficiency” and in “concentrating capabilities in its key assets”, the company added.

Under Calidad Pascual’s ownership since 2004, the Gurb facility currently employs 79 staff. It is engaged in the processing of UHT milk with an annual capacity of 150 million tonnes. Those operations will be transferred to its plant in Aranda de Duero in Burgos.

Casa Tarradellas, which is already headquartered in Gurb and also produces pates and cured meats, has offered to take on the workers post the transaction.

Late last year, Casa Tarradellas agreed to acquire the remaining 40% share of the Herta charcuterie business owned by Swiss food giant Nestlé to give it full ownership.

Transferring the Gurb factory to mozzarella production will take place in phases, with Calidad Pascual planning to end operations by 31 July. Casa Tarradellas will then start renovation and upgrade works, although a target to begin manufacturing was not provided.

“Through this operation, the companies facilitate an industrial handover that guarantees the productive vitality of the Gurb plant through a new future project, prioritising an orderly transition that contributes to local economic development and the sustainability of the agri-food fabric,” Calidad Pascual said in the statement.

For Casa Tarradellas, the plant transfer marks the start of the company producing its own mozzarella for pizzas. Similarly, it began producing pizza flour internally in 2010.