More than 1,500 workers at the German abattoir Tönnies in Gütersloh have tested positive for coronavirus.
Armin Laschet, the governor of the North Rhine-Westphalia region said residents can now only have contact with their own household.
He added that bars, gyms and cinemas are now closed, but restaurants can still serve people from the same household.
Germany’s health ministry, the Robert Koch Institute (RKI), has warned a second wave of the virus is possible and the country must stay vigilant over the coming weeks as coronavirus is still circulating.
The coronavirus R rate soared by 60% in just one day and the reproduction rate has hit 2.88 on Monday, from 1.79 on Sunday.
With the R rate being 2.88 this means that for every 100 people who come into contact with the virus, 288 people will most likely contract coronavirus.
RKI released the new R rate figures, and it is very likely there will be an increase amongst the German population.
One of Germany’s largest meat factories, Tönnies stopped slaughtering last Wednesday after the outbreak was confirmed.
Last week over 1,000 workers were tested and there was 657 people infected with the virus.
The outbreak at the Rheda-Wiedenbrück meat processing plant, in the district of Gütersloh near Bielefeld is operated by Tönnies.