Germany-based Vion Zeven has unveiled plans to shut its pork slaughter and processing plant in Lingen, as the facility has been incurring higher losses in the recent past.
In 2013, the slaughtering operations at the plant dropped by 30% to 12,000 pigs a week.
Efforts to generate additional export orders were found to be inadequate to record sufficient turnover, the company noted.
In addition, Vion also experienced reduced raw materials supply from Dutch companies across the German border.
Following closure of the plant, which is expected by 30 April 2014, the company seeks to focus on its operations in Lower Saxony through its Emstek plant.
Vion Zeven executive board has been in talks with officials of Lingen municipality and the Emsland district.
Last year, an independent firm of accountants was appointed to generate a report on the economic outlook for the Lingen slaughter plant. The firm concluded that closing the Lingen plant was the only realistic option.
The company said it will hold talks with the Works Council to negotiate compensation and redundancy schemes for the affected 104 employees. However, the employees can apply for vacancies at other Vion Food group companies.
