Danish Crown buys buildings from Kurt Skare

On 1 April, Danish Crown takes over approximately 14,000 square meters of buildings and an area of over 120,000 square meters in Vejen. A large part of the buildings were built for food production, which is precisely why Danish Crown jumped at the chance when the buildings came up for sale.

Posted on Mar 21 ,00:15

Danish Crown buys buildings from Kurt Skare

"As everyone knows, it was sudden that the buildings were offered for sale. It opened up some unexpected opportunities for us, because we were faced with having to build a new building in Denmark, and it would not only be more expensive for us, it would also have a significantly longer time horizon, so we quickly agreed with the previous owner", says Søren F. Eriksen, who is Group Production Director at Danish Crown.

The buildings in Vejen will be furnished and equipped so that they match our future needs. Therefore, no production equipment or inventory is taken over. This is because the equipment that is currently in the buildings does not fit into the plans that Danish Crown has for future production in Vejen. 

"We are not ready to talk about what type of production we will have in the buildings yet. It may take up to a year before we are ready to start production in Vejen, so it is also too early to say anything about how many employees we will need", says Søren F. Eriksen. 

It is a cornerstone of Danish Crown's Feeding the Future strategy to raise the value of the Danish shareholders' deliveries of pigs and cattle. This must be done through a targeted investment in sustainability and a higher degree of processing of pig, beef and veal for everything from bacon, steaks and chops to meal components and ready meals. 

"We are making this investment with the aim of strengthening our innovative power in Northern Europe. We have a clear goal of being able to offer our customers in Northern Europe more new products, and we have long had a strategy to make a stronger mark on, for example, the market for meal solutions, which is in constant growth. The purchase of the buildings also opens up other opportunities for us, so we will therefore spend the coming months making a detailed plan", says Jais Valeur, Group CEO of Danish Crown.  

It has been agreed between the parties that the purchase price will not be disclosed.  

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