Meat producer Vion Food Group has agreed to sell its shares in the meat production facilities in Germany's Vilshofen and Landshut to Erzeugergemeinschaft Südbayern (EG Südbayern).
The deal, expected to close later this year, is subject to customary closing conditions and regulatory approvals, the company noted.
Ronald Lotgerink, CEO of Vion, stated, “With this agreement, Vion makes an important step in fulfilling its commitment to securing a stable and sustainable future for its German facilities. This decision is rooted in our long-standing and successful partnership with EG Südbayern.
“We are confident that under their full ownership, both locations will continue to be successful and add value to the regional food production and supply.”
Earlier this year, Vion announced a review of its operations in Germany and the implementation of a new plan, which includes downsizing through divestments and closures.
Strategic Relevance
The Vilshofen and Landshut facilities have a combined slaughtering capacity of 33,000 pigs and a deboning capacity of 650 tonnes per week.
The facilities are well-positioned to meet local market demands and also hold a strong export position in Southern Europe, enhancing their strategic relevance.
Erwin Hochecker, chairman of the board of EG Südbayern, stated, “By fully integrating these facilities, EG Südbayern will continue to support its farmers, providing access to both processing facilities and ensuring their products reach a broad market with the highest standards of quality.
“Our primary focus remains on our members – the farmers of Southern Bavaria – whose hard work and dedication underpin our success. We will also stay a committed partner to the beef site in Waldkraiburg where we will continue supplying cattle in the future.”
