Arla Foods has announced that it will sell its dairy site in Sonthofen, Germany to dairy brand Allgäuer Hof-Milch for an undisclosed sum.

The Sonthofen manufacturing site produces approximately 5,100 tonnes of speciality cheeses such as red wine cheese and wheat cheese.

Arla claims that the production of these speciality cheeses at the Sonthofen site no longer complies with the strategic plans of the brand in both Germany and Europe.

Both brands estimate that the transaction should be finalised by 1 May 2018, and Arla claims all 61 production staff at the plant will be employed by Allgäuer Hof-Milch once the transition has been completed.

Meanwhile, the other 23 members of administrative staff at the plant will wither have their employment transferred to Allgäuer Hof-Milch or be re-assigned to other Arla facilities in Germany.

Peter Giørtz-Carlsen, Arla Foods’ executive vice-president and head of Europe said: “All of our production sites in Germany are focused on supplying both the German market and our export markets, playing a crucial role in our delivery of the Arla Group strategy, Good Growth 2020.

“However, since the site in Sonthofen no longer corresponds with our overall strategic aim, we are pleased to have found a suitable buyer to continue its production and legacy.”