DENMARK: Danish Crown restructuring to hit jobs

By Katy Askew | 17 January 2014

Danish Crown cuts jobs in restructuring move

Danish Crown cuts jobs in restructuring move

Danish Crown has said it will restructure its meat processing operations in Denmark in a move that will impact more than 820 jobs.

The Danish meat co-op said yesterday (16 January) it is taking a number of measures designed to make its pork processing capabilities more competitive. It wants to bring slaughtering capacity in line with the number of pigs for slaughter produced by its members.

"We have spent the past few months turning every stone to find out how we can responsibly solve the current challenge of surplus capacity while simultaneously keeping a close eye on costs in our Danish production," Danish Crown CEO Kjeld Johannesen said.

The board of directors has recommended Danish Crown's deboning facility and subsidiary Tulip Food Company's ready meals plant in Faaborg be closed. The moves will hit around 470 jobs.

The company is also starting negotiations with employees and stakeholders at slaughterhouses in Skærbæk and in Bornholm in a bid to establish a "more sustainable cost structure". Danish Crown said it is seeking "alternative solutions" to make production at Bornholm financially sustainable. Likewise, slaughtering operations in Skærbæk must become more cost-effective, the firm insisted.

"We obviously need to be able to receive the members' sows when they need to be slaughtered. However, especially in Skærbæk, sow slaughterings are costly and not competitive, and this needs to be looked at from a strategic point of view. Either we have to minimise the activities, or production has to be smarter and more streamlined," Jesper Friis, CEO of Danish Crown's pork division, said.

Danish Crown did not confirm how many jobs were on the line in Skærbæk and on Bornholm.

As part of the restructuring plan, Danish Crown will also downwardly adjust the capacity of its pig slaughter houses. The capacity adjustment will affect approximately 350 employees at "several" production facilities, the group revealed.

Sectors: Meat & poultry

Companies: Danish Crown

View next/previous articles

Currently reading -

DENMARK: Danish Crown restructuring to hit jobs

There are currently no comments on this article

Be the first to comment on this article

Related research

Meat, Fish & Poultry in Europe

Meat, Fish & Poultry in Europe industry profile provides top-line qualitative and quantitative summary information including: market size (value 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players including k...

Global Meat Market: Merger and Acquisitions February 2014

The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global meat market during February 2014....

Meat (Fresh and Processed)

This report analyzes the worldwide markets for Meat (Fresh And Processed) in Thousands of Tons by the following Product Segments: Pork, Lamb & Goat, Beef & Veal, and Poultry. The report provides separate comprehensive analytics for the US, Canada, Ja...

Related articles

POLAND: HKScan sells shares in Polish JV in Danish Crown

Nordic meat group HKScan is to sell its half of Polish venture Saturn Nordic Holding to co-shareholder and fellow meat processor Danish Crown.

UK: Tulip eyes Chinese expansion after factory investment

UK pork manufacturer Tulip has set its sights on China after the company invested GBP37m (US$62m) into upgrading its facilities for export markets.

UK: Tulip invests in Cornwall "centre of excellence"

Tulip, the UK arm of Danish Crown, plans to invest GBP490,000 (US$806,000) in developing a "centre of excellence" for gammon and bacon production in Cornwall.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page