Nestlé downsizes German operations amid rising costs #NewsGerman

Nestlé is downsizing its operations in Germany by shutting down one facility and divesting another, impacting approximately 225 employees.

In two separate statements, the Swiss food giant said it plans to close its Neuss plant located in the state of North Rhine-Westphalia in mid-2026 and sell its Conow site in the region of Mecklenburg-Vorpommern early that year.

In both cases, Nestlé attributed the downsizing to “declining volumes and overcapacity” at the facilities, driven by growing “price sensitivity” among consumers and “rising costs”.

Fabrice Johan, the chief technology officer for Nestlé in Germany, said of 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 facility, which employs around 145 people, produces Thomy oil, mayonnaise, and mustard in various packaging formats.

Nestlé said it is seeking an external production solution for oil and plans to relocate glass and plastic bottle production to other European countries.

Mustard and mayonnaise tube production will be transferred to the Lüdinghausen site, creating 30 new jobs for the Neuss employees, the KitKat owner said.

Nestlé said it is investing around €13m ($14.1m) in modernising the Lüdinghausen plant and establishing a new production line.

The company said it intends to continue producing nearly 80% of Thomy products at its German facilities.

Meanwhile, the Conow plant, with approximately 80 employees, produces products under the Maggi and Garden Gourmet food brands.

Production of Garden Gourmet Vuna, Maggi Liquid Bouillon, and Maggi Texicana Salsa will be relocated to “other” European sites.

Nestlé confirmed it is in “intensive negotiations” to sell the Conow plant to an unnamed German company, including the on-site workforce.

Johan called the sale “necessary” to strengthen Nestlé’s future position in Germany and Europe.

“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,” Johan added.

The company operates 17 factories in Germany, including more than ten production sites and over 6,000 employees, according to the statement announcing the restructuring of operations. It has two food competence centres in Lüdinghausen and Singen.

Beyond 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.