Vion Food Group will “permanently” close its deboning facility in Hilden, Germany, after competition authorities blocked the proposed sale of the site.
In a statement yesterday (8 January), the Dutch meat company said the move would affect 160 employees.
Operations at the plant are expected to wind down by the end of February.
“The decision is based on ongoing structural changes in the market, which require consolidation,” the statement added.
Vion said it will hold talks with the works council to reach an agreement on the “balancing of interests and a social plan” and will review “employment alternatives” within the group “where possible”.
Premium Food Group, formerly known as the Tönnies Group, had been looking to buy the facility in Hilden, as well as the slaughterhouses in Buchloe, Crailsheim, and Waldkraiburg.
However, Germany’s competition authority blocked Premium Food Group’s bid in June.
The Bundeskartellamt said at the time the deal would hit farmers and smaller rivals.
Premium Food Group had said it would try to overturn the decision through the German courts but, in November, put forward an unusual suggestion for rival meat processor Westfleisch to step in.
In a statement issued to Just Food at the time, Westfleisch said: “We welcome the decision of the Premium Food Group to bring an end to the stalemate concerning the restructuring of the southern German slaughterhouse structure and to clear the way for new discussions with Vion. As for the role of Westfleisch, we are currently unable to make any concrete statements, as we have not yet had the opportunity to review the documents in detail.”
Vion issued its own statement on Premium Food Group’s offer to Westfleisch.
“Following the prohibition of the planned transaction of Vion sites to Premium Food Group by the German Federal Cartel Office, Vion and PFG have discussed in recent days how to give way to other parties to engage with Vion regarding their interests.
“Several interested parties have already approached us, and we will carefully assess all serious proposals to determine the best long-term solution – for our business, our teams, and our partners in the region.”
Vion began a round of meat-asset closures in Germany in 2023 and later announced a plan to exit the market completely.
In 2024, the then Tönnies Group struck a deal to buy Vion’s cattle slaughterhouse and pre-packed facility in Altenburg in the Thuringia region of Germany and acquire Ahlener Fleischhandel, a ham processing plant in Westphalia.
In May, Premium Food Group announced plans to close the ham production site.
