Wernsing Food Group, the Germany-based manufacturer, is to shut a loss-making production facility by the end of the year.

The company is to close a site making deli products in Bottrop, a city in west-central Germany. Some 164 employees will be affected by the closure.

In a statement, Wernsing Food Group said it had invested in the factory but it had not “achieved profitability”.

“Since the plant was taken over by the Wernsing Food Group, over €4m ($4.4m) have been invested in various production facilities in order to strengthen and expand the vertical integration at the site,” the statement read.

“However, due to existing over-capacity on the market, the plant’s own capacity utilisation could not be increased and thus the cost structure could not be sustainably improved.”

Wernsing Food Group acquired the site in 2021 from German dairy and chilled-foods major Unternehmensgruppe Theo Müller.

At the same time, the yogurt giant sold the Homann brand to Dutch chilled-foods business Signature Foods.

Wernsing Food Group declined to comment on where it could move production once the facility in Bottrop closes.