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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.

Richard Trechman, managing director of Danone DACH, 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. "Nevertheless, 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. In this context, 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.”

Despite the closure, 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, employing nearly 600 staff members. 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.