In a strategic move, Nestlé is downsizing its operations in Germany by shutting down one facility and divesting another, affecting around 225 employees.
The Swiss food giant recently announced plans to close its Neuss plant located in North Rhine-Westphalia by mid-2026 and sell its Conow site in Mecklenburg-Vorpommern early that same year.
Both closures stem from “declining volumes and overcapacity” at these facilities. Growing “price sensitivity” among consumers, along with “rising costs,” has prompted this difficult decision.
Fabrice Johan, the chief technology officer for Nestlé in Germany, stated regarding the Neuss closure: “It was a difficult decision, which we made after intensive examination and consideration of the overall situation. Now it’s time to take responsibility for the employees on site and create prospects for them.”
The Neuss facility, which employs approximately 145 staff, produces Thomy oil, mayonnaise, and mustard in various packaging formats.
Nestlé outlined plans to seek external production solutions for oil and intends to relocate glass and plastic bottle production to other European countries. Additionally, production of mustard and mayonnaise tubes will shift to the Lüdinghausen site, creating 30 new jobs for the Neuss employees.
The company is investing about €13 million ($14.1 million) to modernize the Lüdinghausen plant and establish a new production line. Notably, Nestlé aims to continue producing nearly 80% of Thomy products within its German facilities.
Conversely, the Conow plant, which employs around 80 individuals, produces products under the popular Maggi and Garden Gourmet brands. Production of items such as Garden Gourmet Vuna, Maggi Liquid Bouillon, and Maggi Texicana Salsa will relocate to “other” European sites.
Nestlé has confirmed that it is engaged in “intensive negotiations” to sell the Conow plant to an undisclosed German company, including the on-site workforce.
Johan emphasized that the sale is “necessary” for strengthening Nestlé’s position in Germany and Europe, adding: “However, it offers the opportunity to preserve the site and the jobs. We are doing everything we can to bring the negotiations to a successful conclusion.”
Currently, Nestlé operates 17 factories in Germany, encompassing more than ten production sites and over 6,000 employees, according to the statement announcing the restructuring of operations. The company also has two food competence centres located in Lüdinghausen and Singen.
Apart from the plant closures, Nestlé is also streamlining its corporate structure in Germany. In April, the company announced plans to cut dozens of jobs at its German head office in Frankfurt.
At the time, Nestlé stated, “At Nestlé Germany’s Frankfurt site, we are adjusting the course for the future. The aim is to better join forces in the market, to take more focused decisions and to work even better in international structures.”
Notably, Nestlé reported net sales in Germany of SFr2 billion ($2.26 billion) in 2024, a decline of 9.2% from the previous year, contrasting with the group’s total of SFr91.3 billion, as indicated in its latest annual report.