Agrofert is committing millions of euros to “modernise” its German bakery subsidiary Lieken as part of a long-term corporate strategy running through to 2030.
Lieken said that the investment programme would represent a “triple-digit million-euro” outlay.
Approximately €70m ($81.2m) of the funding has already been approved. The allocation includes financing to expand production capacity at Lieken’s Wittenberg site.
The bakery manufacturer said further information about the individual facilities and investment projects would be released in “due course”.
The programme will focus particularly on Lieken’s core categories, including toast, sandwich bread and sliced bread. It will involve installing new production lines as well as modernising existing equipment and facilities.
According to Lieken, the planned measures are designed to improve “efficiency, capacity, quality and sustainability” across its manufacturing network.
Agrofert added Lieken to its portfolio in 2013, when the Czech food group acquired the business from Italian pasta producer Barilla.
Lieken sells products under the Golden Toast and Lieken Urkorn brands and also manufactures private-label bakery products for retailers.
The company told Just Food that the investment would enable it to prioritise areas in which it has “extensive experience, strong production capabilities, well established brands and a strong position in the German retail market”.
“The aim is to strengthen our competitiveness, ensure reliable supply for our customers and create the conditions for sustainable and profitable growth,” it said.
The capital programme is also expected to increase automation and enable “more efficient” production processes within the bakery business.
Asked whether the investment would generate additional employment, Lieken said: “At this stage, we are not making any statements regarding specific
employment effects.”
The company said it had set operational targets for future production capacity, but declined to disclose further details.
