Leading European dairy processor Mueller is to install a new filling line at its Leppersdorf dairy manufacturing facility in Eastern Germany, according to a report from Dairy Industries international.
The Mueller group is currently pressing ahead with plans for expansion, and expects to add an extra 100,000 tonnes of extra production capacity to its European processing capabilities within the next two years.
Mueller's CEO Thomas Hinderer said that the extra capacity was needed to meet increasing demand in European, especially in Germany.
The European dairy sector is currently racing to consolidate as many of the larger players swallow up smaller businesses. The move has also led to increasingly modern production facilities with bigger and bigger processing capacities.
The problem for Mueller has been finding suitable sites for its expansion plans. Earlier this year, an €85 million project was approved by the board on a greenfield site next to the groups existing facility in Aretsried. However, planning authorities in Western Germany would not allow such expansion, allegedly because of the size of the facility.
In Eastern Germany, on the other hand, local authorities have proven to be far more cooperative with regards planning permission for industrial facilities, as they are keen to attract investment. Which is why Mueller has located its facility in Leppersdorf.
The new capacity is expected to help the company manufacture an extra 700 million units of yoghurt each year.