FDBusiness.com

Vion Food is to make a multi-million euro investment in its Bavarian processing plants as part of a new strategy for its German operations. Almost half of the investments will focus on the expansion of the slaughter- and cutting plant in Landshut, Bavaria. Completion of the project in mid-2015 will see processing capacity almost double to 21,000 pigs per week.

In Vilshofen, another specialist pork slaughterhouse in Bavaria, millions more will be invested to install state-of-the-art equipment, that will optimize processing efficiencies. Vion assumes that the parties of the minority shareholder, producer association Südostbayern eG, will also approve the investments in Landshut and Vilshofen.

Landshut and Vilshofen are key regional pork businesses for Vion and are important for the export market. At the same time, Vion is to invest in the Waldkraiburg plant in Upper Bavaria. This will become the largest beef plant within Vion, with capacity increasing from 3,000 to 4,500 cattle per week.

Pig processing will focus on the Landshut and Vilshofen sites and the Waldkraiburg plant will become the largest beef plant. As a result, it is envisaged that in the long-term, the business locations at Straubing and Pfarrkirchen will close. It is also planned to close the beef processing plant at Leutkirch, with cattle being re-directed to the Buchloe and Crailsheim operations.

Netherland-baed Vion Food had a turnover of €7 billion in 2013 and is by one agricultural stakeholder, the Zuidelijke Land- en Tuinbouworganisatie (ZLTO), with approximately 16,500 members.