Ontex has announced that it will phase out production at its manufacturing plant in Mayen, Germany, by mid-2022.
Production at the facility is being wound down due to the impact of legacy contract losses and softer market trends on revenue.
The company also noted that the improvement in efficiency measures implemented in recent years was not enough to compensate for the drop in volume and achieve competitiveness.
Markus van Gumpel, vice-president, manufacturing Europe, said, “Choices needed to be made, and as Mayen’s production capacity was not fully utilised, we have decided that Mayen’s role in the group will be to focus on global process engineering and global platform innovation for the Ontex Group, and be one of the driving locations to bring innovation even faster to the market.”
The Way Forward
Mayen will function as an excellence centre for global process engineering, global product technology, and market adaptation baby care, thereby bringing innovations faster to our consumers.
Ontex is conducting a worldwide business review, which includes the most efficient use of production assets to return to profitable growth.
In April of this year, Ontex announced plans to strengthen and diversify its board of directors by including new members with experience in the personal hygiene and retail sectors, ESG and sustainability, procurement, finance and governance.
In 2020, the personal hygiene brand reported a 3.1% decline in like-for-like revenue, to €2,2 billion, impacted by lower sales in Europe.
© 2021 European Supermarket Magazine – your source for the latest Supply Chain news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.