DMK Group has agreed to sell its Waldfeucht-Haaren ice cream production site to Schwarz Group as part of its business restructuring plan.
The German dairy cooperative has said the move is intended to streamline its production network in its ice cream business.
Located in Heinsberg district, North Rhine-Westphalia, the site will be sold to Schwarz Group, which owns and operates the retailers Lidl and Kaufland.
Following the agreement, Schwarz Produktion will take over the running of the site for its own ice cream production and will retain its approximately 200 employees.
DMK Group plans to focus its ice cream production on the Everswinkel and Prenzlau sites. The company intends to increase production capacity at its Everswinkel site from the current approximation of 65 million litres of ice cream to around 100 million litres.
“The sale of the Waldfeucht-Haaren site is enabling us to concentrate our ice cream production in two locations. That creates further synergies,” said Ingo Müller, DMK Group CEO.
Müller added: “We are continuing to build the DMK of the future. Germany’s biggest dairy cooperative, with brands such as Milram, Humana, Uniekaas and Alete, and one of the biggest suppliers to the German food retail industry, should continue to develop into a strongly market-and consumer-oriented company. And to position ourselves for this in the best possible way, one thing we need to do is to further optimise our own production network.”
The transfer is planned for the beginning of 2021. Financial details of the deal were not disclosed.
Earlier this month, DMK Group announced that it is expanding its ice cream portfolio in Germany with fresh creations for the Milram and Baileys brands as well as a new partnership with Katjes Fassin.
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