Danish Crown plans to shift meatball production away from its factory in the residential area of Copenhagen with a view to eventually close the site.
The meat cooperative said today (16 April) that a final decision on the future of the Aalborg plant has yet to be made but the intention is to move manufacturing to other facilities in Denmark, with the factory at Vejle in southern Jutland the favoured option.
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Danish Crown added the development opportunities at Aalborg, a site that dates back almost 60 years, are limited due to the “dense” housing environment.
The factory employs 140 workers, and most will be offered positions at other Danish Crown facilities, the group said. The plan is to gradually move production from Aalborg with the aim to close the site in 2028 and sell the plant.
“It will be an ongoing process until 2028, and of course it affects all the skilled employees that we currently employ at the factory,” Karolina Henriksen, the company’s executive vice president, said in a statement.
“Fortunately, we expect to be able to offer employment to most of the employees elsewhere in Danish Crown.”
Henriksen added that another Danish Crown site in Svenstrup producing sausage would be a candidate for employee relocations.
“We are facing a major investment in a new production facility for our ready-to-eat meatballs and in this connection we had to decide where the production should be located in the future,” Henriksen explained.
“So far, it has been in Aalborg city center, but overall it makes the most sense to move the production out of the city, where there is the necessary space and the development opportunities we need.”
Meanwhile, plans for the Vejle pork processing plant extension were announced earlier this year with a target to start operations at the new part of the site in October.
The investment at Vejle follows an internal reorganisation initiated by Danish Crown a year ago to split the business into three separate divisions: Danish Crown Industry, Danish Crown Foods and Danish Crown UK.
Aalborg falls within Danish Crown Foods.
