Danish Crown to close German convenience food division
For more than a decade, Danish Crown has been cutting, marinating, mincing and packaging meat for customers in the German retail trade. Production has taken place in the Oldenburg Convenience department, which has production facilities at Danish Crown's bacon and cold cuts factory in Oldenburg and to a lesser extent at the slaughterhouse in Essen.
However, this business has not been profitable in recent years, and therefore Danish Crown's management has decided to close Oldenburg Convenience by the end of February 2025.
"Competition on the German market is fierce, and to make money selling fresh meat to German retailers, costs must be absolutely minimal and quantities large. We have found that our setup is not competitive, so we are producing the last fresh goods for German retailers at the end of February", says Per Fischer Larsen, Sales Director at Danish Crown.
Around 160 employees have been involved in the production of retail-packed meat at the two factories. They were informed of the decision at a meeting, where they were also told that Danish Crown expects to be able to offer the vast majority of employees another job, either at Danish Crown's bacon and cold cuts factory in Oldenburg or alternatively at the slaughterhouse in Essen.
"It is always sad to have to wind down activities, but in this case there is fortunately a good prospect that we can keep most of the employees. In the coming weeks we will sit down with representatives of the employees and their union to find the best possible solutions for the employees, which they will then have to deal with individually", says Rasmus Aadal, Production Director at Danish Crown.
The shutdown is expected to negatively impact Danish Crown's accounts by a small double-digit million amount in the current financial year.
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