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German mills unite to cut costs

02-Feb-2004

Three German milling companies have joined forces to create a new group called Grain Millers which they claim will allow them to benefit from significant cost reductions in terms of procurement, distribution and product development.

Rolandmühle, Heyl-Mühlen and Mills United, Hovestadt & Münstermann said that while these functions would be combined, each company would still remain independent and responsible for the region in which it operates.

Grain Millers will operate from seven locations - Bremen, Drentwede, Münster, Ahlen, Recklinghausen, Bad Langensalza and Gotha - and will process more than 1 million tons of wheat and rye each year. Combined sales from the new company are expected to be around €200 million.

Each of the partners brings its own assets to the venture. Rolandmühle is based in Bremen, close to the sea port of Bremerhaven and thus providing significant opportunities to improve procurement costs and facilitate flour exports.

Mills United's plants are located in Münster, Ahlen and Recklinghausen, giving it a strong presence in one of the most densely populated areas of Germany. Meanwhile, the Heyl mills are located close to the Thüringer basin, the best wheat-growing area in Germany.