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Müller has revealed plans to close two of its Landliebe production sites in Heilbronn and Schefflenz, Germany, by summer 2026. Müller acquired the Landliebe brand and its German production plants from Dutch dairy company FrieslandCampina, which revealed plans to divest part of its German consumer business to Müller in 2022. In a press statement, Müller said that the continued operation of the sites in Heilbronn and Schefflenz is “not viable due to negative economic prospects”. Approximately 400 employees across the sites will be impacted by the gradual shutdown process. According to the dairy giant, the main reasons for the closure are cost pressure and investment requirements, and a challenging market situation. Cost structures at both sites are “too high and not competitive,” and the Heilbronn site has an “enormous” need for investment which has further exacerbated the situation. Additionally, Müller pointed out that within the highly competitive dairy products market, significant volume growth and the resulting cost efficiencies are not expected in the medium- to long-term. Cornelia Heiser, managing director for the Landliebe business, commented: “A comprehensive economic analysis has shown that, under these conditions, the two production sites have no prospect of returning from the deep red to a profitable business in the long term”. The product portfolio manufactured at the sites, which includes yogurts and desserts under the Landliebe brand, will be integrated into Müller’s other German locations with production and distribution to continue beyond 2026. Heiser added: “We are aware that this decision will cause uncertainty among employees and will start talks with the works council as soon as possible with the aim of finding socially acceptable solutions”.