Swedish poultry processor Scandi Standard has leased an “industrial facility in Karpalund to evaluate whether to invest in increasing production of value-added chicken at the site. 

Under its subsidiary Kronfagel, it plans to slaughter, cut and produce value-added chicken products at the facility.

The firm said demand for chilled chicken in Sweden is “strong” and market growth within retail was estimated at 15% in value in 2015. Kronfågel increased sales by 18% during the same year.

Scandi Standard said Kronfågel has increased volumes from 36 to 50 million slaughtered chickens during the last four years.

“As a consequence of this growth Kronfågel has signed a long term lease contract of an industrial facility in Karpalund and evaluates whether to invest in the facility to reach an annual capacity of 20 million chickens to start with,” Scandi Standard said. “The company believes that a manufacturing site in this part of Sweden would make economic sense as well as reducing environmental impact and improving animal welfare further through shorter transports. An investment in Karpalund would also create growth opportunities for chicken breeders in the south of Sweden.”