French dairy group Lactalis is in negotiations to acquire Canadian dairy processor Saputo's cheese manufacturing facility in Germany for an undisclosed amount.
Saputo's German facility manufactures Italian specialty cheeses for the retail market segment, while the UK facility primarily produces mozzarella for the food service sector.
Saputo spokeswoman Sandy Vassiadis said that the company is in advanced stages of negotiations regarding a possible sale of the German cheese plant.
The company is making every effort at the moment to close the transaction by the end of this month, Vassiadis added.
If negotiations between Lactalis and Saputo are successful, about 70 jobs will be saved at the Heiden plant or it will have to face a closure.
In February, Saputo announced the closure of its cheese production plant in Germany, and has proposed to shut down its facility in Wales, UK, citing challenging market conditions in Europe.
Saputo earmarked its Heiden, Germany facility for closure, and the company has started a 30-day consultation period with regard to the closure of its cheese facility in Newcastle Emlyn, Wales.
In addition, Saputo is in discussions with undisclosed party with regard to the sale of Wales facility.
Saputo is involved in the production, marketing and distribution of cheese, fluid milk, yoghurt, dairy ingredients and snack-cake products, which are sold in more than 50 countries across the globe. The company operates about 47 manufacturing facilities, primarily across Canada, the US and Argentina.
