Denmark

Danish Crown: Production in Germany is being reorganized

Pork

Falling slaughter numbers and falling consumption of pork in Germany are now causing Danish Crown to adjust its approach to the German market with the clear aim of raising earnings. Therefore, a deboning factory is scheduled for closure, so that all slaughter and deboning are collected at the group's German slaughterhouse.

Posted on Jan 20 ,06:00

Danish Crown: Production in Germany is being reorganized

Since Germany was hit by African swine fever in the early autumn of 2020, the country's production of pigs has plummeted. From being one of Europe's leading exporters of pork, Germany has now been reduced in terms of market to a country with a focus on the domestic market. Danish Crown is now taking the consequences and is reducing its production capacity in Germany.

"We simply have to make more money in Germany. Therefore, we believe it is time to shift the focus from pure large-scale production to a more agile setup. The slaughterhouse in Essen has an important task in supplying our own processing factories with raw materials, and at the same time production will be adapted so that we can produce exactly the goods that our customers in both Germany and the rest of Europe demand from week to week," says Jais Valeur, Group CEO of Danish Crown.  

Specifically, Danish Crown's factory in Boizenburg, east of Hamburg, is set for closure. The group has had production at the factory in Boizenburg for almost 20 years, but within the next six months the plan is to transfer a large part of the activities to Danish Crown's slaughterhouse in Essen, southwest of Bremen.

More than 200 employees at the factory have been already informed. As far as possible, they will be offered work at other factories in the Danish Crown Group.

"It is a miserable situation, because there are many skilled and faithful employees employed at the factory in Boizenburg. To the extent that it is possible, they will be offered a job at one of our other factories," says Per Laursen, who is production director at Danish Crown.

The management in Boizenburg is now negotiating with the factory's work committee about the conditions for transferring employees to other factories, as well as what can be done for the employees who may not want to accept the offer of another job in the group. Once the negotiations have been completed, Danish Crown will draw up a plan for the winding down of production in Boizenburg. After that, it is expected that the buildings will be disposed of.

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