Dairy: Theo Müller closes two East German plants - over 300 employees affected

The Theo Müller group of companies wants to close two production sites in Saxony-Anhalt and Saxony. Affected are the Homann sauce factory in Rogätz in the Börde district with around 160 employees and the Sachsenmilch cheese factory in Leppersdorf in the Bautzen district, where 160 people also work, as the company announced. Production in Rogätz is scheduled to cease by the end of September 2027.

The semi-hard cheese dairy at the Sachsenmilch location in Leppersdorf, including the associated production, packaging and administration areas, is scheduled to close on December 31st. The “Leipziger Volkszeitung” first reported on this.

A spokesman for the group confirmed the plans upon request. Sachsenmilch belongs to the Theo Müller group of companies. The sour milk cheese dairy and the mozzarella area at the location in the municipality of Wachau near Autobahn 4 are not affected.

Despite intensive efforts and the examination of all options for action, the area cannot be operated economically in the long term due to internal and external conditions, the spokesman said. The company is working on socially acceptable solutions together with the works council.

This includes, among other things, opportunities for continued employment within the company, mutual contract adjustments and qualification and further training measures.

According to its own statements, the group of companies also sees no sustainable economic prospects for the sauce factory in Rogätz. The location was taken over by Homann Feinkost in 2008. The company has been part of the Theo Müller group of companies since 2011. The approximately 160 employees were informed about the plans.

Despite extensive efforts, it was not possible to achieve a cost structure that would enable sustainable and competitive pricing of the products manufactured there, the company said. There is also a significant need for investment.

The demand for sauces in jars is declining because consumers increasingly prefer other packaging formats. The resulting falling utilization further exacerbates the location's cost problems. The company wants to discuss socially acceptable solutions for the affected employees with the works council as soon as possible.