Danish Crown to invest US$322m in modernization of meat processing factories

DENMARK – Europe’s largest pork producer Danish Crown has announced an investment of around DKK 2 billion ($322 million) in the coming year in modernization of its factories in Denmark and Germany.

With a primary focus on automation, the capital will be used to further improve working conditions, as well as future-proof production.

Its pork business which accounts its largest share of revenue will receive the largest share of the US$322 million investments, according to a report by FoodBev.

The investment which is about 25% higher than the company’s budget for last year, will be used to expand and upgrade Danish Crown’s palletising operations at its abattoir in Horsens, Denmark.

Reports from the company indicate that as part of the modernization exercise, Horsens abattoir will also be equipped with a new automatic robotic system.

“It is crucial for us to keep investing decisively in our production facilities through continued automation. This is the way to enhance both the working environment and our competitiveness – which in turn is the way to secure jobs.”

Jais Valeur – CEO of Danish Crown

In addition, Danish Crown plans to invest in increased production capacity at its factory in Dinklage, Germany, where it produces ready-cooked ham for pizzas.

As well as new production facilities, the company plans to expand its repertoire with new lines, which it says will increase its market share in the ham segment of the European pizza toppings market.

Other funds will be channeled to investments in Danish Crown’s abattoirs in Blans and Ringsted, in Denmark.

 The Blans facility will see new equipment in the cutting department, while the investment in Ringsted will be used to establish a facility to produce a special minced product exclusively for the Japanese market.

The announcement comes after Danish Crown launched its new brand identity, in order to highlight its aim to halve its climate footprint by 2030 and become climate neutral by 2050.

It has committed to invest funds to reduce the group’s climate footprint and environmental impact, including cuts to its water and energy consumption.

By improving efficiency in operations, this investments will cut down on wastes and energy use and thus help Danish Crown achieve its ambitious sustainability goals.

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