Nestlé to close two German plants by 2026 amid rising costs, declining sales

GERMANY – Nestlé has revealed plans to shut down its Conow production site in early 2026 and its Neuss plant in mid-2026, citing escalating costs and falling sales due to growing consumer price sensitivity. 

The decision, reported by the company, comes after a thorough review of the performance of both facilities, which have faced challenges in maintaining profitability.

The Conow site, located in Germany, employs around 80 workers who produce culinary items under the Maggi and Garden Gourmet brands. 

Nestlé informed the workforce of the closure on Thursday, March 20, and is now negotiating with another German company interested in acquiring the facility and retaining its employees.

Production of items like Garden Gourmet Vuna, Maggi Liquid Bouillon, and Maggi Texicana Salsa will shift to other European locations. 

Fabrice Johan, chief technology officer at Nestlé Germany, said, “This change is necessary to position our company for the future within Germany and Europe. It was a difficult decision, but it offers the opportunity to preserve the site and the jobs.” 

Remco Posluschny, Conow plant manager, expressed optimism, stating, “We are a highly qualified and motivated team and want to seize the opportunity to continue production here with another company.”

Meanwhile, the Neuss plant closure will impact approximately 145 employees. 

The facility, which manufactures Thomy oil, mayonnaise, and mustard, has struggled with overcapacity and declining demand. 

Nestlé plans to redistribute production, with tube manufacturing moving to its Lüdinghausen plant in Germany, while glass and plastic bottle production will relocate to other European sites.

An external solution is being explored for bottling Thomy oil. According to Nestlé, the restructuring aims to boost efficiency and competitiveness across its European operations.

A report by the company also highlighted a €13 million investment in the Lüdinghausen site to modernize facilities and add a new production line, creating 30 jobs primarily offered to Neuss employees. 

This move ensures that 80% of Thomy products will still be made in Germany. 

Nestlé is collaborating with the works council to support affected workers through job opportunities at other sites, training programs, and partial retirement options.

The closures reflect broader market pressures, with Nestlé adapting to consumer trends and operational challenges. 

The company, which operates 17 locations and employs over 6,000 people in Germany, remains committed to its food competence centers in Lüdinghausen and Singen. 

Negotiations and transition efforts are underway to minimize the impact on staff and maintain production quality across its network.