By the end of 2026, Danone plans to shut down its dairy production plant in Ochsenfurt due to evolving consumer trends, underutilized capacity, and escalating operational expenses. Despite years of investment, the facility has not met production goals. This decision will affect around 230 employees, but Danone pledges fair social packages, retraining, and internal job opportunities for affected workers. Richard Trechman, managing director of Danone DACH, expressed gratitude towards the committed workforce and acknowledged the challenging market conditions that led to this decision. Even with the closure, Danone remains dedicated to the German market by focusing on its Fulda site, which specializes in baby formula and medical nutrition. The company aims to invest significantly in enhancing operational efficiency.

A significant reduction in capacity utilization, expected to reach only half of 2019 levels this year, influenced the decision. Changing consumer preferences and higher production costs compared to other European plants were critical factors. To support displaced workers, Danone intends to collaborate with local employment agencies and businesses to secure alternative placements. A social plan will be negotiated with the works council to explore options such as early retirements and bridging pensions.

Impact on Workforce and Social Responsibility

With the impending closure of the Ochsenfurt plant, approximately 230 employees face uncertain futures. However, Danone demonstrates a strong commitment to supporting these individuals through comprehensive measures. These include offering tailored social plans, retraining programs, and prioritizing internal job placement opportunities within the organization. Management recognizes the dedication of the Ochsenfurt team and acknowledges their contributions over the years.

The decision to close the plant stems from a complex interplay of factors, including reduced demand for locally produced items and the inability to manufacture high-potential products at this location. Richard Trechman emphasized the pride he feels in what the team has accomplished despite operating in an increasingly challenging environment. In response to the closure, Danone is taking proactive steps to mitigate the impact on employees. By collaborating with regional employment agencies and local enterprises, the company seeks to facilitate new job prospects for those affected. Additionally, negotiations with the works council aim to establish a robust social plan encompassing various strategies like early retirement options and bridging pensions, ensuring minimal disruption to employees' lives.

Focusing Efforts on Fulda: A Commitment to Innovation and Efficiency

While closing the Ochsenfurt plant signifies a strategic retreat, Danone reaffirms its dedication to the German market through increased focus on the Fulda facility. Specializing in baby formula and medical nutrition, the Fulda site represents one of Danone’s largest operations in the region, employing nearly 600 people. As part of the 'Renew Danone' initiative, the company intends to make substantial investments in this location to enhance operational capabilities and product specialization.

The dramatic decline in capacity utilization at Ochsenfurt—projected to fall to just 50% of 2019 levels—highlights the pressing need for this strategic realignment. Consumer preferences are shifting rapidly, favoring different types of products that cannot be efficiently produced at the Ochsenfurt location. Consequently, concentrating resources at the Fulda site aligns perfectly with Danone's vision for future growth and innovation. Through significant investment in advanced technologies and infrastructure upgrades, Danone aims to boost productivity and maintain a competitive edge in the European market. This approach underscores the company's long-term commitment to the German market while fostering an environment conducive to producing specialized, high-demand products. Furthermore, the enhanced focus on Fulda ensures continuity and stability for hundreds of employees who contribute to the success of this vital operation.