Danone to shut down dairy plant in Germany, affecting 230 jobs

GERMANY – French food giant Danone has announced plans to close its dairy plant in Ochsenfurt, Germany, by the end of next year, a move that will impact around 230 employees. 

The decision comes as the company cites high production costs and low capacity usage at the facility, marking a significant shift in its operations within the country.

According to Danone, the Ochsenfurt plant, which produces dairy products, desserts, and high-protein puddings, has been struggling with costs that are well above the average of its other European plants. 

The company also noted a steady decline in the facility’s efficiency, with capacity utilization expected to drop to just half of its 2019 levels this year.

 A statement from Danone explained that closing the plant is the “only way to remain competitive and successful in the long term in German-speaking countries.”

 The closure is set to take effect in the final quarter of 2026, giving the company time to wind down operations.

Richard Trechman, managing director for Danone’s operations in Germany, spoke about the tough decision, saying, “The plant is not sustainable in the current market situation, and we’ve had to make this difficult call to secure our future.” 

The announcement has raised concerns among workers and local communities in Ochsenfurt, a town in Bavaria, where the plant has been a key employer.

Danone has not yet finalized where it will shift production of the affected products.

“Where the products will be concretely produced after the planned closure will be decided in the coming months.” 

Meanwhile, the company emphasized its ongoing commitment to Germany, pointing to its Fulda plant, which employs nearly 600 people and specializes in baby formula and medical nutrition. 

Danone plans to invest heavily in Fulda, with annual spending in the double-digit millions to upgrade its facilities.

The closure reflects broader challenges in the food industry, where rising costs and changing consumer habits are forcing companies to rethink their strategies. 

Despite the shutdown, Danone remains optimistic about its future in Germany. 

The company reported strong sales growth of 4.3% in 2024, reaching 27.376 billion euros, driven by demand in markets like China and North America. For 2025, it forecasts sales growth of 3-5%, with a focus on health and nutrition products.

Local officials in Ochsenfurt have expressed disappointment, with some calling for support for the affected workers. 

Danone has promised to work with employees and unions to manage the transition, though details on severance or relocation options remain unclear. 

As the closure looms, the spotlight is on how Danone will balance its global ambitions with its footprint in Germany.