Danish Crown opens factory in Pinghu, China
Danish Crown's Pinghu factory in China was inaugurated today as the company intends to consolidate its position in the Chinese market.
Danish Crown's new factory in Pinghu 100 km southwest of Shanghai is supposed to supply products to the Chinese market produced by pork from Denmark. The factory is 17,000 square feet - about the same as four soccer fields - and is expected to produce 14,000 tons of processed pork products annually. Last year, Danish Crown partnered with the Chinese e-commerce giant Alibaba and the agreement makes the plant's products available for 466 million users. "Our goal is to establish Danish Crown as a premium brand in China over the next five years. The Pinghu factory is the cornerstone of this initiative because it enables us to supply both fresh and processed products based on Danish raw materials to Chinese consumers, says Jais Valeur, Group CEO of Danish Crown.
Last year, Denmark exported 213,000 tonnes of pork to China with a total value of $340 million. Figures increase in 2019 and Danish Crown expects a further increase in 2020 as China is affected by more outbreaks of African swine fever and therefore imports more pork than usual. Present at the inauguration, Danish minister of Food Mogens Jensen declared: "Great gift to both Danish Crown and the Danish authorities for this to be possible. The Chinese make great demands, and the factory opening is only possible because the Chinese have confidence in Denmark and our high food security. It is an example of the fact that Danish food is in demand around the world and that the Danish insistence on safety, quality and sustainability is a brand we can be proud of".