Lorenz Bahlsen Snack-World, of Hannover, Germany, has said that it is considering concentrating the production of one of its speciality products, Laugengebäck crackers, to its existing factory in Skawina in Poland.
According to a report from Lebensmittel Zeitung, the company says that it expects to be able to achieve considerable cost advantages from the relocation, mainly due to cheaper running costs.
Its existing factory in Lindau, Bavaria, would be particularly affected by the move. With its annual capacity of 11,000 tons it is relatively small. On top of that, the company says that the present condition of the building would demand a complete renovation, which would mean that production would be closed down for months. Company owner Lorenz Bahlsen says that this would be "economically not feasible".
As the Polish facility is substantially larger and labour costs are lower than in Germany, production costs would be at a considerable advantage. This, the company claims, would more than compensate for increased costs in investments and transport.
The factory in Skawina is only eight years old and already produces 12,000 tons of "Saltletts" and various crackers. Some 140 employees would be affected if the factory in Lindau is closed down, and negotiations with the works council are to begin shortly.
Lorenz Bahlsen Snack-World produces a range of snacks popular throughout Europe. Brand names include Crunchips, NicNac's, Curly and Salzletten. Based in Germany the company has a total of 3,500 employees.