Hochdorf selling German milk plant
Hochdorf owned 60% of Uckermärker Milch, while Ostmilch Handels previously held 40% of the shares.
It said the sale is based on Hochdorf’s strategic focus on its Baby Care and Dairy Ingredients divisions, with Swiss production sites.
The sale will be completed with the closing date on February 28, 2020.
Hochdorf Holding Ltd acquired a 60% holding in Uckermärker Milch GmbH at the beginning of 2015. It anticipated using the plant to make infant formula, as well as other products, for Europe and the Central and South American markets.
However, Hochdorf said with subsequent sales of Swiss-made infant formula showing unexpectedly strong growth, the additional production capacities required were achieved in Switzerland.
The decision to build a new spray tower line and the resulting increase in capacities at the Sulgen site in Switzerland meant that the holding in the Uckermärker Milch GmbH lost its strategic importance.
“We are delighted to be able to hand over the plant to our partner Ostmilch Handels GmbH in sound condition,” Dr Peter Pfeilschifter, CEO of the Hochdorf Group said.