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Danone to close Ochsenfurt dairy plant amid restructuring in Germany Danone is set to close its dairy production facility in Ochsenfurt by the fourth quarter of 2026 a move driven by shifts in consumer behaviour low capacity utilisation and rising operational costs The decision comes after 15 years of consistent investment in the plant which has struggled to meet production expectations in recent years The closure will impact approximately 230 employees and Danone has committed to providing fair social plans retraining programmes and continued employment opportunities within the company for those affected acknowledged the difficulty of this decision highlighting the commitment of the Ochsenfurt employees and the plant's long-standing legacy “We have grown in an extremely challenging environment in the German-speaking region in recent years and are strongly positioned for the future I am very proud of what we have achieved as a team,” he said the plant in Ochsenfurt is not sustainable in the current market situation Hecontinued: "There is less consumer demand for the locally manufactured products and high-potential Danone products cannot be produced locally I very much wish we didn't have to make these plans for Ochsenfurt I can only assure all employees that we will do everything we can to find another position at Danone for as many employees as possible.” Danone is reaffirming its commitment to the German market with plans to concentrate production efforts at its Fulda site which specialises in baby formula and medical nutrition The Fulda facility is one of Danone's largest in the region The company intends to invest significantly in this site as part of its ‘Renew Danone’ initiative aimed at enhancing operational efficiency and product specialisation The decision to close the Ochsenfurt plant is attributed to a dramatic decline in capacity utilisation which is expected to reach only 50% of 2019 levels this year Danone's management has cited changing consumer preferences and higher production costs compared to other European facilities as key factors in this strategic shift As part of its commitment to the affected workforce Danone plans to collaborate with the regional Federal Employment Agency and local businesses to facilitate job placements for displaced workers The company will also negotiate a social plan with the works council to mitigate the impact of job losses exploring options such as retirements and bridging pensions Get in touchWould you like to be interviewed by FoodBev Media or share a recent innovation with us?  Click here to contact us The Activia maker said it is lining up the closure of the site in Ochsenfurt by the final quarter of next year Danone plans to shut a dairy plant in Germany pointing to production costs and the facility not using its full capacity Danone explained the decision was necessary as the “only way to remain competitive and successful in the long term in German-speaking countries” The French giant said production costs at the site are “well above the average of other European Danone plants” It also cited “years of inefficiency caused by declining capacity utilisation” Danone said the facility’s capacity utilisation is expected to reach only half of 2019 levels in 2024 managing director for Danone’s operations in Germany said the plant is “not sustainable in the current market situation” Don’t let policy changes catch you off guard Stay proactive with real-time data and expert analysis “There is less consumer demand for the locally manufactured products and high-potential Danone products cannot be produced locally,” Trechman added.   The Ochsenfurt plant manufactures dairy products Asked from where Danone would ship these products to Germany after the closure of the site a spokesperson said: “Where the products will be concretely produced after the planned closure will be decided in the coming months.” Danone said “remains committed” to Germany as a manufacturing base and plans “significant investments” at its Fulda site is focused on producing specialised products such as baby formula and medical nutrition.  The spokesperson said: “Our Fulda facility is one of Danone’s largest production sites globally The plant plays an important role in the company’s overall strategy and we are investing every year a double-digit million euro amount in modern The company said it will review vacancies at the Fulda plant to offer retraining opportunities for affected employees in Ochsenfurt Nominations are now open for the prestigious Just Food Excellence Awards - one of the industry's most recognised programmes celebrating innovation This is your chance to showcase your achievements Don't miss the opportunity to be honoured among the best - submit your nomination today Give your business an edge with our leading industry insights View all newsletters from across the GlobalData Media network