Switzerland-based food company HOCHDORF has decided to discontinue wheat germ production at its Hochdorf site, as well as use the production and storage space for Bimbosan organic baby milk powder.

As part of this move, the company intends to decommission the Bimbosan Welschenrohr site.

From January 2021, HOCHDORF intends to consolidate Bimbosan infant-formula production at the site.

The newly created space at the Hochdorf facility will be used by the company for the filling and dispatch of Bimbosan products, as well as additional storage.

Bimbosan will also move its headquarters from Welschenrohr to Hochdorf.

HOCHDORF Group CEO Dr Peter Pfeilschifter said: “Since we only have to move a few production facilities to Hochdorf and can clear external storage space, we expect annual cost savings of around Sfr1m.

“We also expect the consolidation of the sales, marketing and office staff to result in more efficient cooperation, which is necessary for the dynamic market environment.

“This package of measures will strategically strengthen the Bimbosan brand, enabling it to develop further in the Swiss domestic market and position itself successfully for international competition.”

HOCHDORF anticipates the move to result in significant cost savings, increase efficiency as well as generate considerable synergies in cooperation.

Last year, the company announced that it would focus on its baby care and dairy ingredients divisions in the future.

HOCHDORF noted that it is also planning to divest Welschenrohr property after the completion of the relocation.

The relocation is expected to impact nearly ten full-time production and logistics positions at the Welschenrohr site, and HOCHDORF said that it will offer the affected individuals with replacement positions within the group wher possible.