Schwarz Produktion has begun construction on a €400 million expansion of its Bonback industrial bakery in Halle (Saale), Germany, marking a major investment in large-scale bakery production, automated logistics and supply-chain capacity.

The expansion will add five new baking lines to the site, alongside an automated deep-freeze high-bay warehouse providing 65,000 storage spaces. The project is expected to create around 400 new jobs and is scheduled to become operational in 2027.

Bonback produces bakery products for Lidl and Kaufland, both part of the Schwarz Group, with the investment designed to strengthen the supply of baked goods within the group’s retail network.

The scale of the project reflects the growing importance of combining production capacity with increasingly automated logistics infrastructure. Rather than simply expanding the number of baking lines, the development brings manufacturing, freezing and storage into a larger integrated operation.

The new deep-freeze warehouse will use automated systems to handle storage and logistics, while modern cooling technology is intended to contribute to improved energy efficiency across the expanded facility. The site will also use green electricity as part of Schwarz Produktion’s wider approach to reducing the environmental impact of its manufacturing operations.

According to Schwarz Produktion, the expansion will strengthen supply security while allowing Bonback to respond to continued demand for bakery products.

The project also highlights how investment in food manufacturing is increasingly being directed towards resilience as well as output. For high-volume producers, additional capacity needs to be supported by efficient material handling, cold-chain infrastructure and reliable energy systems if increased production is to translate into a more robust supply operation.

The Bonback development is therefore more than a conventional bakery expansion. It provides an example of how major food manufacturers are combining additional processing capacity with automation and logistics technology as they prepare factories for higher volumes and increasingly complex supply requirements.

Construction has now officially begun, with the expanded Bonback operation expected to come on stream in 2027.