Vion sells shares in two meat production sites in Germany as part of strategic review
20 Aug 2024 --- Vion Food has signed an agreement to sell its shares in the Vilshofen and Landshut sites to Erzeugergemeinschaft Südbayern (EG Südbayern), which previously held a 49% stake in these sites. The transaction is expected to close later this year, subject to customary closing conditions and regulatory approvals.
Vion’s remaining German operations are still under strategic review and will continue as normal until further decisions have been made, according to the company.
At the start of this year, Vion closed its German meat plant and divested its beef slaughterhouse and pre-packing facilities. In line with recent moves, the company has announced a comprehensive package of measures for 2024, focusing on sustainability.
In H2 of this year, the company announced a sharpened focus on production and sourcing in the Benelux region, including potential changes in its operational structure.
Meeting market demand
The Vilshofen and Landshut sites are anchored in Bavarian meat production and processing. Together, the sites have a slaughtering capacity of 33,000 pigs and a boning capacity of 650 metric tons per week.
Both facilities operate at high quality and efficiency standards and are well-positioned to meet local market demand. They also have a strong export position in Southern Europe, which increases their strategic relevance.
“With this agreement, Vion is taking an important step in its pursuit of a stable and sustainable future for its German sites. This decision is rooted in our long-standing partnership with EG Südbayern. We’re confident that both sites will continue to be successful under their full ownership and add value to the regional food production and supply,” says Ronald Lotgerink, CEO of Vion.
Meanwhile, Erwin Hochecker, chairman of the management board of EG Südbayern adds: “With the full integration of these facilities, EG Südbayern will continue to support its farmers by providing access to both processing facilities and ensuring that their products reach a broad market with the highest quality standards.”
“Our primary focus remains on our members — the farmers in southern Bavaria — whose hard work and dedication form the basis of our success. We also remain a committed partner to the beef sector in Waldkraiburg, where we will continue to supply cattle in the future.”
Earlier this month, a Vion survey revealed that more than a third (38%) of German consumers prefer to buy meat from the country, with most looking for three criteria: quality, freshness and value for money.
