Food giant Orkla has revealed that it is to close one of its pasta factories in Denmark from the start of next year.
According to the Nordic pasta manufacturer, it is planning to close the “small production site” located in Skovlund, which currently only produces pasta for the Dragsbæk brand – part of the Orkla family.
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The production site employs around 20 people and Orkla will be supporting the workers in their search for further employment, Danish newspaper JydskeVestkysten reported.
Just Food has contacted Orkla for further information on the exact number of job losses.
A statement from Orkla Denmark said: “Dragsbæk has decided to move the production elsewhere. All other production in Orkla Denmark continues unchanged.”
However, commenting further on the job cuts, a statement from Dragsbæk A/S said: “The factory in Skovlund has been owned and operated by Orkla in recent years.
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By GlobalData“Dragsbæk has not been involved in the ownership or management of the site, and we are therefore not in a position to comment on staffing or internal matters related to the closure.”
It added: “The closure does not affect Dragsbæk’s own production setup. We continue to operate four factories in Jutland, Denmark, and our business remains unchanged.
“The products previously produced at Skovlund will now be sourced through external partners, which is a natural part of our setup.
“Fortunately, we have a very flexible and efficient structure in Dragsbæk, enabling us to react quickly when such changes occur.”
It comes as Orkla’s Indian unit announced it is launching its initial public offering (IPO) after securing regulatory clearance to list its equity shares on domestic exchanges.
Earlier this year, Orkla also sold its 49% stake in the functional chewing gum start-up Eace Gum based in Denmark. The Nordic group first invested in Eace Gum in 2021 with a 30% interest.
