Gmundner Molkerei to shut Freistadt dairy

Upper Austrian dairy Gmundner Molkerei has said it will close a plant in Freistadt after acquiring it less than four years ago.Gmundner Molkerei head Michael Waidacher announced yesterday (Weds) the 400 deliverers and 15 staff working at the site in Freistadt have already been informed. He added all of them have been offered to work at the firm’s other branches.Waidacher said his company saw no chance of making profitable business at the Freistadt diary.Gmundner Molkerei – one of Austria’s biggest dairy production firms – told local political leaders it would do business at the Freistadt factory for at least 500 days when it took over the site in summer 2006.Waidacher said the local business school signalled interest in using part of the building, adding he preferred bids for a full takeover of the estate.Gmundner Molkerei’s turnover declined by nine per cent year on year to 170 million Euros in 2009. The company explained production costs have soared since it produced and sold almost the same amount of milk and other dairy products as it had in 2008.