Danish Crown, one of the largest meat-processing companies in Europe, has announced that it plans to reduce its production capacity in Germany.
Furthermore, the company has claimed that since Germany was hit by African swine fever in the early autumn of 2020, the production of pigs has dropped.
‘A More Agile Set-Up’
Following the announcement, Danish Crown noted that it will adjust its approach to the German market with the clear aim of improving earnings.
In a statement, the company noted that more than 200 employees at its facility in Boizenburg, east of Hamburg, have been informed that the facility is to be wound down, and they will be offered work at other facilities in the group, as far as possible.
“We simply have to make more money in Germany. Therefore, we believe it is time to shift the focus from pure large-scale production to a more agile set-up,” commented Jais Valeur, group CEO of Danish Crown.
“The abattoir in Essen has an important task in supplying our own processing facilities with raw materials, and, at the same time, production will be adapted so that we can produce exactly the goods that our customers in both Germany and the rest of Europe demand from week to week.”
Negotiations Taking Place
Once the negotiations have finished, Danish Crown is expected to draw up a plan for the winding-down of production in Boizenburg. After that, it is expected that the buildings will be sold.
Danish Crown claims that the management in Boizenburg is now negotiating with the facility’s work committee about the conditions for transferring employees to other facilities, as well as what can be done for the employees who may not want to accept the offer of another job in the group.