Hero Group in union consultation over Götene plant
Lenzburg, Switzerland, January 23, 2024: The Hero Group has today informed its employees at its production plant in Götene (Sweden) that the company has started negotiations with unions about the future of the plant.
The plant in Götene currently employs 190 employees who work to produce gruel, infant formula, and gluten-free mixes for the Group’s different companies, including Semper, and third-party business partners.
The decision to launch consultations with the unions follows changing market conditions with lower consumption of baby milk, a decreased demand from China, and a lower birth rate that has led to a decreasing demand for baby and toddler milk products. The Group has also shifted its strategic focus away from this category, and also Gluten Free and B2B production, prioritizing a smaller number of core categories.
“Changing market forces and strategic focus have resulted in far lower than expected production at our Götene plant, meaning that we are not able to operate efficiently and competitively. This is why we have launched consultations with unions,” Jim Frandsen, General Manager of Hero’s Northern European Cluster said.
As of today, all employees have been notified about the intention to close the plant and possible subsequent redundancies, and Hero has started negotiations with unions in this respect. In the meantime, business at the plant continues as normal. It is not possible to say when there will be a final decision.
“We are now working with our unions to find the best possible solution in the circumstances,” Frandsen said.
The Group also announced that discussions are under way with business partners Arla for the potential sale of part of the factory assets.
About Hero Group
The Hero Group is an international food company focused on branded nutritional food products. The company was founded in 1886 in Lenzburg, Switzerland, where its headquarters are still located today. Hero's main product categories of Baby & Toddler Food, Natural Spreads, and Healthy Snacks are complemented by its activities in Baby & Toddler Milk and Specialties. The Group, which lives by its mission to delight consumers by conserving the goodness of nature, boasts a global footprint and its portfolio consists of many well-known international and local brands. In 2022, the Group generated revenues of CHF 1.2 billion.
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