GERMANY – German dairy group, Müller has announced the closure of two facilities in Baden-Württemberg, which were acquired just a year ago from Dutch dairy company FrieslandCampina.
The Heilbronn and Schefflenz sites are set to shut down by the end of summer 2026, affecting approximately 400 employees.
The acquisition initially announced in 2022, was an expansion move for Müller, confining a portion of FrieslandCampina’s German assets, including facilities and a product portfolio tailored for the German market.
However, regulatory hurdles delayed approval until February of the following year, with conditions requiring Müller to divest certain milk-based brands, including Tuffi and Landliebe.
Despite successfully overcoming these challenges and finalizing the acquisition, Müller has now declared the Heilbronn and Schefflenz sites economically non-viable.
According to the group, this decision is grounded in an in-depth economic analysis, revealing high-cost structures and substantial investment needs, particularly at the Heilbronn facility.
“The competitive nature of the dairy products market, especially for yogurts and desserts produced at Heilbronn, does not project volume growth, posing challenges to long-term profitability.”
In response to the closures, Müller has assured the continuation of production and distribution of products from these facilities beyond 2026.
The affected product portfolio is expected to be integrated into other German locations within the Müller group.
Cornelia Heiser, managing director responsible for the Landliebe business, acknowledged the difficulty of the decision and its potential impact on employees.
“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,” he said.
“Müller is committed to initiating discussions with the works council promptly to find socially acceptable solutions for those affected.”
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