Danish Crown Closes Chinese Factory in China Following Strategic Review
COPENHAGEN, Feb 27 (Reuters) – Meat producer Danish Crown announced on Thursday that it has closed its factory in Pinghu, eastern China, following a strategic review. The company stated that the plant did not align with its overall strategy.
Danish Crown, one of the world’s largest pork exporters, has undergone significant restructuring in recent years. This includes the closure of one of its major slaughterhouses in Denmark and the announcement last October of plans to cut around 500 white-collar jobs.
The farmer-owned company opened the Pinghu factory near Shanghai in 2019 as part of its expansion efforts in China. However, the facility never achieved the expected earnings despite substantial efforts to address initial challenges.
In a statement, Danish Crown said, “It has however never succeeded in generating the expected earnings, even though significant efforts were made during the period to rectify a poor start.”
As a result, Danish Crown has closed the plant, laid off 112 employees, and signed a letter of intent to sell the facility.
Original story: Reuters
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