Swiss multinational food and beverage company Nestlé has unveiled a strategic decision to discontinue operations at its Conow and Neuss plants, scheduled for early 2026 and mid-2026 respectively. This move is driven by the need to address escalating operational costs and declining sales volumes, attributed to heightened consumer price sensitivity. The company emphasizes that these decisions follow an extensive evaluation of the performance metrics of both facilities. Negotiations are currently ongoing with a German entity interested in acquiring the Conow plant, along with its workforce. The Conow site, which specializes in culinary products under the Maggi and Garden Gourmet brands, employs around 80 individuals. Meanwhile, the Neuss facility, responsible for producing Thomy oil, mayonnaise, and mustard, impacts approximately 145 employees. Nestlé aims to enhance its competitiveness across its German food plants and optimize its European operations through this realignment.

According to Fabrice Johan, Chief Technology Officer at Nestlé Germany, the restructuring represents a necessary step towards ensuring the company’s future viability within the German and European markets. Despite the challenging nature of the decision, Johan highlights the potential for preserving the sites and jobs through successful negotiations. Remco Posluschny, Plant Manager at Conow, expresses optimism about the skilled and motivated team's ability to continue production under a new ownership structure. He notes significant investments made in recent years and underscores the goal of maintaining high-quality product manufacturing.

The closure of the Neuss plant also reflects broader market trends impacting Nestlé's operations. With increasing consumer price consciousness leading to reduced demand and overcapacity, the company plans to relocate product manufacturing within Germany and other European countries. An external solution is being sought for bottling Thomy oil, while glass and plastic bottle production will shift to other European locations. Tube production for mustard and mayonnaise will transition to the Lüdinghausen plant. Johan reiterates the importance of taking responsibility for affected employees during this transition period.

To support impacted workers, Markus Vormann, Plant Manager at Neuss, outlines collaborative efforts with regional institutions to secure suitable opportunities for employees. These initiatives include engaging with the Federal Employment Agency and the Chamber of Industry and Commerce, as well as reaching out to local companies for employment prospects. Furthermore, Nestlé intends to invest €13 million in modernizing the Lüdinghausen site, establishing a new production line, and creating 30 additional jobs primarily offered to Neuss employees. This investment aligns with the company's strategy to boost competitiveness and leverage synergies within its European network.

Nestlé remains committed to its presence in Germany, where it operates 17 locations and employs over 6,000 individuals. Moving forward, the company will collaborate closely with works councils to explore responsible solutions for affected employees, encompassing opportunities at other Nestlé sites, training programs, partial retirement options, and collective bargaining agreements. Through these measures, Nestlé aims to navigate the current challenges while maintaining its commitment to quality and innovation in culinary product manufacturing.