Danish Crown to Sell China Facility Amid Strategic Shift

Danish Crown, the Denmark-based pork processing giant, has announced its decision to sell its facility in Pinghu, China.

This move comes as part of a broader strategic shift within the company. A spokesperson confirmed the sale to Just Food, noting that the Pinghu factory represents a very small part of Danish Crown’s business and did not develop as expected.

The decision to divest the China facility was made by Niels Duedahl, who took over as CEO last August. Duedahl succeeded Jais Valeur, who stepped down as chief executive earlier than anticipated in June.

This announcement follows Danish Crown’s recent decision to cease selling retail-packed fresh meat in Germany, a move aimed at improving profitability. As a result, the Oldenburg Convenience division in north-west Germany will be wound down by the end of February.

In its 2023/2024 report, Danish Crown described the past year as one marked by significant market and geopolitical changes that impacted its operations. Looking ahead to the financial year 2024/25, the company expects a continued decrease in slaughter animal production across Europe.

Although the pace of decline slowed in 2023/24, the downward trend remains challenging and may affect Danish Crown’s supply chain and pricing strategies. The number of slaughtered animals in Northern Europe has decreased substantially, further complicating the company’s outlook.

 

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