Meat giant Danish Crown has decided to move deboning from a site in Denmark to a plant in the UK.

In January, Danish Crown announced it would close its deboning department at its facility in the local town of Faaborg because the production was too costly to remain in Denmark.

Today (13 August), the co-op said it would invest in expansion at a site in Bugle in Cornwall. 

"Back in January, we said that production would be moved to Poland, Germany or the UK where Danish Crown already has a number of facilities, and we have now decided on the UK due to the synergies which can be realised with Tulip Ltd," Jesper Friis, CEO of Danish Crown's pork arm, said.

Danish Crown said "a large proportion" of Faaborg's production is destined for the UK market. Its Tulip subsidiary was also found to have surplus capacity. The expansion of the Bugle plant will make it the largest de-boning facility in the UK.

The co-op, meanwhile, also plans to install an air drying and linear curing site further west in the town of Redruth site. The projects will see at least 250 new jobs created.

The GBP16m investment is being part-funded through the government regional fund with a grant of GBP4.8m. Work will start this autumn and is expected to end in the first half of 2015.

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Tulip Ltd to Invest £16m in its Cornish Operation.

Tulip Ltd has announced today joint plans with its owners, the Danish Crown Group, to invest £16m in its Cornish operation that will benefit the region by creating 250 much needed new jobs.

The plan will see the Group make significant investments in de-boning facilities in the Bugle site, which will make it the largest de-boning facility in this country as well as maintaining its existing capability to produce traditional cure and smoked Pork products.

As well as the expansion of the Bugle facility, Tulip Ltd will be installing a new state of the art Air Drying and Linear Curing facility at its Redruth site that will see that business grow by around 40%.

The £16m investment programme is being part funded with a Government Regional Fund grant of £4.8m, and although the ambitious expansion plans are subject to final planning approval, work should start on the project during the autumn of 2014 with completion of the project targeted for the first half of 2015.

Commenting on the announcement Chris Thomas, CEO Tulip Ltd, explains; “This is a very exciting time for our business and for Cornwall, when our investment programme has been completed we will have created an additional 250 new jobs, which is fantastic news for the whole region.

“I am delighted that our parent company Danish Crown has chosen to invest in this region, a decision due in the main to the skill and commitment of our colleagues here in Cornwall, the encouragement and support we have received from local government, regional agencies and in particular local MP Stephen Gilbert.”

The expansion of the company’s Bugle and Redruth facilities is subject to obtaining planning permission and a decision on the application is expected within the next two months.



Original source: Tulip