Global dairy company Arla Foods has reportedly divested its German cheese factory to Vache Bleue, a Belgium-based cheese processor.

Financial details of the deal have not been disclosed by both companies.

Based in Bad Wörishofen, Bavaria, the cheese factory is reported to be ‘no longer in line with the strategic orientation of Arla’s stores in Germany and Europe’.

Additionally, the sale deal includes Arla’s stake in French cheese processor Martin Sengelé Produits Laitiers.

Arla was quoted by FoodBev media as saying that it had ‘succeeded in finding a buyer who will continue the work in Bad Wörishofen in its present form’.

“The cheese factory is reported to be no longer in line with the strategic orientation of Arla’s stores in Germany and Europe.”

Of the total combined production capacity of 32,000t per annum, the Bad Wörishofen plant produces 18,000t of cheese, while the remaining 14,000t is manufactured at Martin Sengelé Produits Laitiers.

The transfer of the facility to Vache Bleue is expected to be completed by the end of the first quarter this year, according to media sources.

Vache Bleue intends to retain all the employees working at the two facilities.

It is anticipated that the Belgian cheese processor will continue to produce cheese products for Arla to meet its current supply contracts.

The Danish dairy company has also reached an agreement with milk supply groups in the Allgäu region to transfer its existing milk yield to Vache Bleue.

Last year, Arla Foods sold its Allgäu plant in Sonthofen to Allgäuer Hof-Milch.