DMK Group: Supervisory Board approves plans to adjust capacity
Bremen, 7 June 2024. At its ordinary meeting, the Supervisory Board of DMK Deutsches Milchkontor GmbH today approved the planned streamlining of production capacities by a majority. The company is thus reacting to regionally changing raw material volumes and is also taking aspects of value-adding product range development into account in this planning.

The decision was preceded by a renewed, extensive examination of the planned measures by means of an independent expert opinion on behalf of the employee representatives. This, however, did not allow any other conclusions to be drawn regarding the sustainable and economic continuation of the areas in question.

Like any other manufacturing company, the DMK Group aims to optimise its network of production capacities. These capacities are determined by the interplay of three factors: The volume of milk per region as well as demand and capacity at plant level. Depending on these factors, the plant structure and product portfolio must be constantly optimised to achieve the highest possible value for the processed raw milk. This also includes strengthening products with higher added value and reducing those with lower returns. DMK mainly produces standard products at the affected sites, which, combined with the expected decrease in milk volumes, has led to the adjustment plans. 

The Supervisory Board's decision now initiates the further processes. The schedule envisages implementing the measures by spring 2025. The sites concerned are Dargun (complete closure) as well as Edewecht, Hohenwestedt and Everswinkel (with capacity reductions in individual areas).

DMK assures the up to 150 employees affected at the above locations of comprehensive support. As a next step, the company will soon enter into a responsible dialogue with the social partners and the affected employees to discuss their future career paths and offer a comprehensive package of measures. The DMK Group thus has a strong interest in retaining good employees and deploying them in other functions.

DMK is aware of the consequences of this decision and regrets having to go this route, however sees no economic alternatives. Operations at the other DMK Group sites with a total of around 7,000 employees are not affected by the measures described.