Vion Food Group has announced it is reviewing its operations in Germany and has developed a set of measures to be implemented in 2024.
The global producer of meat and plant-based alternatives said the strategy includes downsizing through divestments and closures.
'Significant Implications'
“The intended steps in Germany hold significant implications for our employees, customers, suppliers, and business relationships," said Ronald Lotgerink, CEO of Vion Food Group.
"We therefore carefully considered the changes to make our operations more efficient and flexible on our journey towards a future-proof organisation."
Facilities To Be Sold
As part of its new strategy, Vion is planning to sell the cattle slaughterhouse and pre-packed facility in Altenburg, as well as Ahlener Fleischhandel ham specialist to Tönnies Group.
The pig processing plant in Perleberg is set to be sold to Uhlen GmbH.
Closing Conditions
The corresponding agreements have been signed and are expected to be finalised in the first quarter of 2024.
The contracts include the transfer of approximately 700 employees to the respective purchasing sides.
'Supply Chains'
Vion said it will maintain business relationships and fulfill all obligations until the final closure, ensuring a 'seamless' transition period for all partners in the chain.
"We stay dedicated to building sustainable supply chains that connect farmers, customers, and partners," said Lotgerink.
Emstek Pig Facility
In line with the planned reduction in business operations in Germany, Vion said it made substantial efforts to identify a prospective buyer for the Emstek pig facility, aiming to preserve the site.
However, it claimed no acceptable offers were received.
'Severe Competition'
Vion further noted that European meat companies, especially in Germany, are facing 'severe competition' from the USA, South America, and China on the global market.
It also warned that the outbreak of African Swine Fever (ASF) has intensified pressure on German meat companies.
