Danish Crown divides 'core business' into three
Meat group Danish Crown has restructured its 'core business' into three distinct units to 'create a more efficient structure'.
The co-op has divided its Danish Crown Business Unit into Danish Crown Industry, Danish Crown Foods and Danish Crown UK.
In a statement issued on Friday (4 April), the company said it was aiming to 'ensure full focus on value creation and regain competitiveness in the pig market'.
CEO Niels Duedahl, who took over the role in September from Jais Valeur, said: 'We must ensure a sharp focus on value creation.'
He added each of the three new units 'must generate earnings that can be passed on to the owners'.
The restructuring comes after Danish Crown conducted a 'thorough analysis,' which determined that the 2021 merger of its Pork and Foods divisions was 'not working as intended'.
Duedahl said: 'Instead of continuing to spend resources on a complex integration, we choose to make a division.'
The company said Danish Crown Industry will oversee the operation of pig slaughterhouses and sales to industrial customers.
The unit will employ approximately 5,200 employees and generate a turnover of around DKr17bn ($2.5bn).
Danish Crown Foods will look after the sales and production of fresh and processed products for retail and foodservice customers.
Employing around 3,000 staff, this division has a turnover of around DKr13bn.
Danish Crown UK will function as a standalone unit with approximately 1,000 employees and a turnover of DKr4bn.
The company, which owns the Tulip brand, said the UK arm can 'best be developed' with a 'strong and local management' team dedicated to efficiently running local production sites and consistently serving customers across the region.
Each of the three business units will operate under separate leadership and will be evaluated independently based on their own performance, Duedahl explained.
During the transition period, Duedahl will serve as interim CEO for all three units, while the company searches for permanent managing directors.
He believes the new structure will give each business unit a 'much sharper focus, stronger management power and clarity on where and how they can and should create profit'.
Despite the internal split, the company confirmed that for accounting and external communication purposes, the divisions will continue to be referred to collectively as Danish Crown.
The Danish Crown Group now comprises eight business units: Danish Crown Industry, Danish Crown Foods, Danish Crown Beef, Danish Crown UK, DAT-Schaub, ESS-FOOD, KLS, and Sokolow.
In February, the group announced it would cease operations at its processed meat factory in Pinghu, China.
Located near Shanghai and opened in 2019, the site was put up for sale in January.
"Danish Crown divides 'core business' into three " was originally created and published by Just Food, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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Yahoo
07-04-2025
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Danish Crown divides 'core business' into three
Meat group Danish Crown has restructured its 'core business' into three distinct units to 'create a more efficient structure'. The co-op has divided its Danish Crown Business Unit into Danish Crown Industry, Danish Crown Foods and Danish Crown UK. In a statement issued on Friday (4 April), the company said it was aiming to 'ensure full focus on value creation and regain competitiveness in the pig market'. CEO Niels Duedahl, who took over the role in September from Jais Valeur, said: 'We must ensure a sharp focus on value creation.' He added each of the three new units 'must generate earnings that can be passed on to the owners'. The restructuring comes after Danish Crown conducted a 'thorough analysis,' which determined that the 2021 merger of its Pork and Foods divisions was 'not working as intended'. Duedahl said: 'Instead of continuing to spend resources on a complex integration, we choose to make a division.' The company said Danish Crown Industry will oversee the operation of pig slaughterhouses and sales to industrial customers. The unit will employ approximately 5,200 employees and generate a turnover of around DKr17bn ($2.5bn). Danish Crown Foods will look after the sales and production of fresh and processed products for retail and foodservice customers. Employing around 3,000 staff, this division has a turnover of around DKr13bn. Danish Crown UK will function as a standalone unit with approximately 1,000 employees and a turnover of DKr4bn. The company, which owns the Tulip brand, said the UK arm can 'best be developed' with a 'strong and local management' team dedicated to efficiently running local production sites and consistently serving customers across the region. Each of the three business units will operate under separate leadership and will be evaluated independently based on their own performance, Duedahl explained. During the transition period, Duedahl will serve as interim CEO for all three units, while the company searches for permanent managing directors. He believes the new structure will give each business unit a 'much sharper focus, stronger management power and clarity on where and how they can and should create profit'. Despite the internal split, the company confirmed that for accounting and external communication purposes, the divisions will continue to be referred to collectively as Danish Crown. The Danish Crown Group now comprises eight business units: Danish Crown Industry, Danish Crown Foods, Danish Crown Beef, Danish Crown UK, DAT-Schaub, ESS-FOOD, KLS, and Sokolow. In February, the group announced it would cease operations at its processed meat factory in Pinghu, China. Located near Shanghai and opened in 2019, the site was put up for sale in January. "Danish Crown divides 'core business' into three " was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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Danish Crown to cease operations at China unit
Danish Crown has decided to stop operations at its processed meat factory in Pinghu in China and is in talks to sell the facility. The plant, which opened in 2019 and is located near Shanghai, was put up for sale by the company last month. In a statement, Danish Crown said the factory has not reached the 'intended profitability' due to 'ongoing challenges'. Attempts to address the issue have been 'unsuccessful', it added. Danish Crown CFO Anders Aakær Jensen said: 'It is clear to us that the operations in Pinghu is not the right strategic fit for Danish Crown. 'To carry on our current set-up in Pinghu is no longer a viable option, and therefore we have decided that the time is right to bring those operations to an end while we work diligently to reach a final decision about the future of the factory itself.' Jensen confirmed the meat co-operative has signed a letter of intent with a 'preferred buyer and agreed terms for a divestment'. 'While these talks are promising, we expect they will still take a few months to conclude,' Jensen added. The pork giant said the end of operations in Pinghu could result in 112 redundancies. The company intends to 'repurpose the quality equipment' from the site elsewhere in its global supply chain. Danish Crown has a casings business, DAT-Schaub, with operations in China that will continue. "The closure and sale of the factory in Pinghu will have a minor effect on our business in China," a Danish Crown spokesperson told Just Food. "In the financial year 2023/24 we had a turnover in China of DKr2.8bn ($390.4m), mostly from the export of Danish pork meat to China. We expect a turnover at the same level this financial year." Last month, Danish Crown announced it had decided to stop selling retail-packed fresh meat in Germany as part of efforts to improve its profitability. The decision will lead to the winding down of the Oldenburg Convenience division in Oldenburg in north-west Germany by the end of February. "Danish Crown to cease operations at China unit" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
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Danish Crown to cease operations at China unit
Danish Crown has decided to stop operations at its processed meat factory in Pinghu in China and is in talks to sell the facility. The plant, which opened in 2019 and is located near Shanghai, was put up for sale by the company last month. In a statement, Danish Crown said the factory has not reached the 'intended profitability' due to 'ongoing challenges'. Attempts to address the issue have been 'unsuccessful', it added. Danish Crown CFO Anders Aakær Jensen said: 'It is clear to us that the operations in Pinghu is not the right strategic fit for Danish Crown. 'To carry on our current set-up in Pinghu is no longer a viable option, and therefore we have decided that the time is right to bring those operations to an end while we work diligently to reach a final decision about the future of the factory itself.' Jensen confirmed the meat co-operative has signed a letter of intent with a 'preferred buyer and agreed terms for a divestment'. 'While these talks are promising, we expect they will still take a few months to conclude,' Jensen added. The pork giant said the end of operations in Pinghu could result in 112 redundancies. The company intends to 'repurpose the quality equipment' from the site elsewhere in its global supply chain. Danish Crown has a casings business, DAT-Schaub, with operations in China that will continue. "The closure and sale of the factory in Pinghu will have a minor effect on our business in China," a Danish Crown spokesperson told Just Food. "In the financial year 2023/24 we had a turnover in China of DKr2.8bn ($390.4m), mostly from the export of Danish pork meat to China. We expect a turnover at the same level this financial year." Last month, Danish Crown announced it had decided to stop selling retail-packed fresh meat in Germany as part of efforts to improve its profitability. The decision will lead to the winding down of the Oldenburg Convenience division in Oldenburg in north-west Germany by the end of February. "Danish Crown to cease operations at China unit" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
