dalli-group accelerates transformation and sets course for successful future
Press release
dalli-group accelerates transformation and sets course for successful future
- Ongoing market changes and rising raw material and energy prices are forcing a fundamental realignment to secure the future of the company.
- The Roadmap 2030 structural programme provides for product range optimisation, a new organisational structure and consolidation of the plants.
- The aim is to strengthen its position as a leading European manufacturer of high-quality brand and private label products in the Personal Care and Home Care segments.
- Job cuts planned in Stolberg, Flörsheim-Dalsheim, Hoensbroek and Heerde and divestment of the plants in Timisoara and Warth.
- Future use and orientation of Westerburg is still under consideration.
Stolberg, April 6, 2022. The dalli-group, Europe's largest consumer goods company with a clear focus on the European brand and private label business in the Ppersonal Care and Home Care segments, is reacting to the difficult market conditions in the consumer goods industry and realigns its activities for the future.
With changing market trends, especially in the private label sector, as well as rising raw material and energy prices, the dalli-group is planning a series of actions to be taken. The aim is to exploit the company’s potential once again fully and to strengthen its position as a leading European manufacturer of high-quality branded and trademark products in the personal care and home care sectors. Furthermore, pricing pressure has led to increased competition in the industry.
The dalli-group is thus accelerating the transformation it initiated back in 2021, known as Roadmap 2030, which had become necessary due to increasing competition in the industry.
By sustainably differentiating itself from the competition with innovative products and consciously promoting sustainability, existing profitable sales are to be secured initially and new sales generated in the future. In order to accommodate the planned growth, the dalli-group still plans to create broad market access for the marketing of trademarks and branded products and to expand into new attractive business areas.
"We are facing the greatest challenge in the history of the dalli-group. As a family business, we are aware of our special responsibility. We want to secure the future of the company by our own efforts, sustainably and in the long term," says Reinhold Schlensok, spokesman for the management of the dalli-group. "The shareholders have already made a clear commitment to the company and support these plans," Schlensok continues.
Range optimisation With the Roadmap 2030, the dalli-group has set the framework for the necessary structural changes on the way to the future. The company plans to focus on growth categories in the future and phase out the unprofitable product categories of hand dishwashing detergents, household cleaners and partly hair and body care in a controlled manner by fall 2022 at the latest.
Adjustment of the manufacturing strategy to ensure competitiveness
As a result, the plant landscape is to be consolidated into the Stolberg, Flörsheim-Dalsheim, Heerde and Hoensbroek plants. The company plans to phase out operations at the Warth site by the end of 2022 at the latest and close the plant thereafter. It is also planned to dispose of dalli production at the Timisoara plant (Romania) by December 31, 2022, either by selling the plant or by closing it. For Westerburg, the company is still examining the future use and orientation.
Adjustment of the organisational structure
Additionally, it is planned to give the dalli-group a new organisational structure based on its new strategic orientation. With this, the company can adapt market requirements and strengthen and further develop sales. The dalli-group is striving for a divisional structure based on the business areas Home Care, Personal Care and Solutions (technical solutions in the industrial business) and aims at gaining new customers at home and abroad in these business areas. This also includes strengthening and expanding e-commerce.
Socially acceptable job cuts planned
According to the current planning status, the above-mentioned measures and the intended change will affect a total of approx. 125-150 jobs in the dalli-group and its subsidiaries at the Stolberg, Flörsheim-Dalsheim, Hoensbroek and Heerde sites. These jobs are mainly located in administration-related functions.
As part of the optimisation of the plant structure, another 550-600 jobs in the dalli group and its subsidiaries are subject for negotiation according to the current planning status. The Stolberg site is largely unaffected. The subsidiary MÄURER & WIRTZ GmbH & Co.KG is not affected.
Participation of employee representatives
The aforementioned measures are subject to the results of the envisaged statutory participation procedures of the employee representatives.
The dalli-group
The dalli-group is a sixth-generation family business with a clear focus on the European brand and private label business. In keeping with our quality promise as a medium-size company, we combine tradition, values, and social responsibility in our more than 175-year company history with the demands of a high-performance and future-oriented group of companies.
Our portfolio includes a wide range of products in the Personal Care and Home Care segments.
Pressekontakt
Ulf C. Goettges
Platanenallee 1c
22529 Hamburg
Tel. 040 5201 4442
Mob. 0151 42335751
goettges@mgalistair.com
1 DALLI-WERKE GmbH & Co. KG, WIN COSMETIC GmbH & Co. KG, WIN AEROSOL GmbH & Co. KG, Dalli-De Klok B.V., WIN-Warth GmbH, Dalli Production Romania S.R.L., Dalli DC Ost S.R.L.