Unternehmensgruppe Theo Müller plans to close two production plants in eastern Germany – one manufacturing sauces and another cheese.

The privately-owned Germany-headquartered dairy giant said its Homann branded sauces site in Rogätz, located in the Börde district in Saxony-Anhalt, is earmarked for closure by the end of September next year.

Its sliced cheese facility in Leppersdorf, a village in Wachau in Saxony, is slated to be shut by the end of December this year.

Müller cited the economic viability of continuing to run the two plants.

The Rogätz sauce factory was once under the ownership of Homann Feinkost, which Müller acquired in 2011. Around 160 workers at the site will be impacted by the closure decision.

Müller said in a statement that “despite extensive efforts, it has not been possible to achieve a cost structure that allows for a sustainable and competitive pricing of the products manufactured at the site”.

Demand for sauces packed in glass jars is declining in preference for other packaging formats, while the Rogätz site would also need “significant” investment to continue operating, Müller added.

As a consequence, Rogätz is “facing a steady decline in capacity utilisation”.

Marcus-Dominic Hauck, the managing director for Müller’s sauces and dressings business, said: “A comprehensive economic analysis has shown that the Rogätz production site has no prospect of recovering from its current loss-making situation and returning to long-term profitability.

“We are aware that this decision will cause consternation amongst our staff. We will be holding discussions with the works council in the near future, with the aim of finding socially responsible solutions.”

In a separate statement, Müller said the Leppersdorf sliced cheese factory “cannot be operated profitably in the long term due to internal and external circumstances”.

While the production of branded and private-label sliced cheeses will end at Leppersdorf, the manufacturing of its Landliebe brand will be farmed out to another “dairy” under licence, a spokesperson confirmed, declining to name the partner.

As with the Rogätz facility, Müller is engaging with the works council at the Leppersdorf site to “focus on opportunities for continued employment within the company”, although the affected number of jobs was not disclosed.

Müller could take ownership of another dairy factory in Germany if talks to acquire the Vogtlandmilch business succeed. Those discussions were confirmed last month.

Vogtlandmilch is headquartered in Plauen in Saxony’s Vogtland region, where the targeted company owns a manufacturing plant.

Berief Food, a producer of dairy alternatives and tofu, was also bought by Müller earlier this year, along with a facility in Beckum, western Germany.