Dutch company FrieslandCampina is to close its Gütersloh, Germany dairy plant, which will impact 231 jobs.

Calling the move a “comprehensive reorientation in the German market today”, the dairy giant explained that investments in its core brands, such as Landliebe, Tuffi and Frico, were part of the reasoning to close the facility, as well as overcapacity.

Jan Kruise, managing director of FrieslandCampina Germany, said: “The German market for dairy products is fragmented and characterised by fierce competition due to overcapacities. We are convinced we will be able to master these challenges by focusing on our strong brands and through strictly consumer-oriented management of our product portfolio. We are the only company with a substantial presence in all dairy categories and channels, and we will benefit from this competitive advantage by proving ourselves a preferred partner in the market in accordance with our strategy.

“In order to achieve our ambitious goals we will invest in our business and we will not shy away from difficult decisions that will open up the path to a successful future for the long
term. We are here to stay.”

Production is scheduled to stop in March 2019.