Danish Crown to divide its core business into three units
Danish Crown has announced plans to restructure its core operations as part of a strategic transformation to increase efficiency and competitiveness in the pig market.
DENMARK – Danish Crown has announced a restructuring plan that will divide its core operations into three distinct business units, effective April.
This move is the second phase of a transformation program initiated by Group CEO Niels Duedahl, who has been overseeing the shift since his appointment seven months ago.
According to Duedahl, the goal of this restructuring is to sharpen focus on value creation and improve efficiency across the company.
The new business units will consist of Danish Crown Industry, Danish Crown Foods, and Danish Crown UK, each with clear responsibilities and goals for profitability.
Danish Crown Industry, which will employ approximately 5,200 people, will handle the operation of pig slaughterhouses and industrial sales, generating a turnover of about US$2.5 billion (17 billion DKK).
Meanwhile, Danish Crown Foods, with a workforce of around 3,000, will manage the sales and production of fresh and processed products, including retail and foodservice, contributing an estimated US$1.8 billion (13 billion DKK) in revenue.
Danish Crown UK, employing around 1,000 staff members, will focus solely on operations within the UK, with a projected turnover of US$560 million (4 billion DKK).
The restructuring comes after a review revealed that the 2021 merger of the Pork and Foods divisions had not delivered the expected results.
Instead of continuing to invest in integrating the two units, the company has opted to reorganize into separate units, each with its own management team and clear focus on profitability.
During the transition period, Duedahl will oversee all three business units, with plans to appoint new directors for each unit in the near future.
The restructuring aims to provide a clearer organizational structure, enabling stronger management and better transparency regarding the creation of profit.
This shift is seen as a step towards restoring competitiveness and improving the company’s position in the market.
Despite the division into three units, Danish Crown will continue to operate as one consolidated group, with its eight business units remaining under the Danish Crown name.
The new structure includes Danish Crown Industry, Danish Crown Foods, Danish Crown Beef, Danish Crown UK, DAT-Schaub, ESS-FOOD, KLS, and Sokolow.
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