Nestlé, 1 of the largest food companies in the world, announces closure of 2 strategical plants producing cultive products specified as mayonnaise and mustard. This decision, taken just before Easter holidays, raises serious concerns for both workers and consumers.
Factory closure in Germany: Neuss and Conow
Neuss plant, located in North Rhine-Westphalia, specializes in production mayonnaise, mustards and oil in tube. Conow plant, located in Mecklenburg-Vorpommern, produces Magga spice and salsa sauce. Both factories will be closed due to:
- Increasing price pressure: expanding production costs force the company to optimize processes.
- Increase in operating costs: Higher spending on natural materials and energy affects the profitability of plants.
- Declining request for manufactured goods: Changing consumer preferences lead to little interest in conventional products.
Neuss plant to be closed to mid-2026, while factory in Conow will be put up for sale at the beginning 2026.
Transfer of production and impact on workers
Part of the production will be transferred to another European Nestlé plants:
- Manufacture of mayonnaise and mustard: Will be transferred to the plant in Lüdinghausen (North Rhine-Westphalia). This is where he'll find employment. 30 people from a closed mill in Neuss.
- Manufacture of oil in tubes: It will be transferred to another European country, which may affect the relocation of part of the staff.
In total, in both plants works about 225 people. any of them will receive proposals to relocate to another Nestlé plants while others may be included in the exemption process. The company declared advisory support to employees, helping them find fresh employment.
Market and consumer response
The Nestlé decision creates mixed reactions:
- Workers and trade unions: They express concern about occupation losses and impact on local communities.
- Consumers: They fear the availability of their favourite products, specified as mayonnaise or mustard.
- Competition: There is an increase in interest from another producers who can benefit from marketplace changes.
Future projections
Nestlé's changes respond to current marketplace challenges. increasing production costs, changing consumer preferences and price force require food companies to adapt their strategies. Nestlé bets on:
- Investments in another establishments: Destiny EUR 13 million for the improvement of production in Lüdinghausen aims to increase efficiency and adapt to marketplace needs.
- Optimisation of processes: Reorganization of production aims to better match offer to consumer expectations and current marketplace trends.
Nestlé's decision to close 2 factories before Easter reflects the hard situation on the food market. This affects workers, consumers and the full industry. In the face of these changes, both companies and consumers must adapt to the fresh marketplace reality, full of challenges and uncertainty.
Read more:
Shock before Easter. The Mayonnaise and mustard mill has been declared closed!