Germany-headquartered Dr. Oetker is set to close its only manufacturing facility in the Czech Republic, impacting 114 jobs.
Despite this closure, the family-owned food manufacturing company will maintain its presence in the Czech market, retaining approximately 74 employees in administrative capacities when the Kladno plant ceases operations in the middle of this year.
The Kladno facility, acquired by Dr. Oetker in 1997, has been responsible for producing various branded baked goods, baking mixes, and dessert powders.
In detailing the closure’s rationale, Dr. Oetker stated that the factory “does not offer any opportunities for expansion” and is no longer conducive to “modern production”.
Moving forward, the business will continue to serve the Czech retail and foodservice markets from its other production facilities located outside of the country.
Bielefeld-based Dr. Oetker emphasized, “The situation on the retail market in which Dr. Oetker operates has changed significantly in recent years due to forced cost increases. Food manufacturers have faced increasing economic pressure and competition in recent years due to rising energy and raw material prices.”
To adapt to this environment, Dr. Oetker must continually modernize its technology and optimize operations. However, the company noted, “Despite the high-quality work of all employees, this is not possible in the production in Kladno due to the limitation of the available production space.”
Employees affected by the Kladno closure will receive severance packages “beyond legal requirements” and will have access to career assistance to facilitate their transition into new job opportunities.
In 2021, amid strategic differences within the Oetker family, the business split into two.
Dr. Oetker, the group’s primary food manufacturing entity, alongside bakery unit Coppenrath & Wiese, drinks company Radeberger Gruppe, beverage delivery unit Flaschenpost, and assets in transportation and hospitality, were consolidated within one group owned by the five heirs of Rudolf-August Oetker’s marriages.
In its 2023 financial year, Dr. Oetker and Coppenrath & Wiese reported total sales reaching €4.2bn ($4.3bn).
In addition to baked goods and baking ingredients, the food business also produces frozen pizza, snacks, chilled desserts, puddings, cakes, and muesli.
