Danish Crown announces plans to sell its facility in China 

CHINA – Danish Crown, the Denmark-based pork processing company, has announced plans to sell its facility in Pinghu, China. 

A spokesperson for the company confirmed the decision, describing the plant as a minor part of their global operations. 

The representative added that the facility had not performed as expected but declined to provide further details.

The move comes under the leadership of CEO Niels Duedahl, who took over in August following the resignation of Jais Valeur. 

Duedahl, an external appointee, assumed leadership during what Chairman Asger Krogsgaard described as a “significant transition” and the start of a new strategic period for the business.

Danish Crown’s decision to exit its China facility aligns with other recent adjustments. 

Earlier this year, the company announced plans to discontinue selling retail-packed fresh meat in Germany to improve profitability. 

As part of this move, its Oldenburg Convenience division in Germany is expected to wind down operations by the end of February.

In its 2023/2024 financial report, Danish Crown highlighted several challenges impacting its operations, including changes in market dynamics and geopolitical pressures.

The company reported a stagnant revenue of US$9.4 billion in 2024, compared to US$9.4 billion in 2023. 

Net profit, however, fell by 28.5% to US$139 million, down from US$194 million the previous year.

The company noted significant disruptions in the European pork market, citing a decline in slaughter animal production, outbreaks of African Swine Fever in Germany, and rising raw material costs due to the war in Ukraine. 

These factors, combined with a collapse in piglet production in Germany, have increased imports from Denmark and prompted Danish Crown to adjust its capacity. 

As a result, it closed two abattoirs—in Sæby in 2023 and Ringsted in 2024.

Danish Crown’s presence in China has faced hurdles before. 

In 2020, the company ended a partnership with Alibaba due to insufficient pork production volumes. 

It previously signed a US$100 million supply agreement with China’s COFCO Meat Holdings in 2019. 

Despite the sale of the Pinghu plant, Danish Crown continues to operate facilities in Denmark, Sweden, Germany, the Netherlands, Poland, the UK, and France.

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