Danish Crown has announced plans to cut capacity at a facility in Denmark, a move that is likely to affect 280 staff.
The pork firm said it was reducing slaughtering capacity by 15,000 pigs a week. The decision comes "after several years of falling slaughter pig production in Denmark", the co-op explained.
Go deeper with GlobalData
"For some time now, we have been transporting slaughter pigs across Denmark to utilise capacity in Ringsted, which is not a sensible solution. Basically, not enough pigs are being produced on Zealand at the moment to warrant a slaughterhouse of this size," Soren Eriksen, VP of production at Danish Crown, said.
"The only sensible way of cutting capacity is by closing down whole units, and in fact this is the first time that we are closing down half a slaughterhouse. However, the Ringsted facility is designed in such a way that it now runs more slaughter lines than other slaughterhouses. Therefore it is possible to physically remove two of the slaughter lines and thereby also realise savings related to maintenance and other overheads. At the end of the day, it is all about ensuring that the owners are paid the best possible price for their pigs so that we can continue to slaughter pigs in Denmark."
The two slaughter lines will be closed by the middle of September.
See Also:
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
