Scandi Standard to acquire poultry processing assets from Tyson Foods
SWEDEN – Sweden’s Scandi Standard is taking over poultry processing equipment from Tyson Foods in the Netherlands.
The deal involves two production lines for breaded poultry products that were damaged in a fire last year at a facility in Oosterwolde, located in the northern region of the country.
The financial details of the agreement have not been disclosed, but Scandi Standard has stated it will need to invest approximately US$28.6 million to restore operations.
The company plans to have the production lines running by the third quarter of this year.
Scandi Standard, which produces both fresh and frozen poultry, said the acquisition will increase its ready-to-eat poultry production capacity by 90%.
CEO Jonas Tunestål said the European market for frozen breaded poultry products is shifting towards a more integrated supply chain, requiring the company to expand beyond its Nordic focus.
He noted that demand declined slightly due to the economic impact of COVID-19 and inflation but is expected to rise in the coming years.
Tunestål also said cost efficiency is critical for success in the breaded poultry segment, where customers like quick-service restaurants require consistent quality and backup capacity in case of disruptions.
The acquisition replaces a previously planned US$30.6 million investment in a Danish facility, which would have increased its capacity by 20% by 2027.
In 2024, Scandi Standard recorded net sales of around 36,000 metric tons of breaded poultry products, which it said represents a 5% share of the European market.
Tyson Foods acquired the Oosterwolde facility in 2019 when it bought the European and Thai operations of Brazilian meat processor BRF.
Scandi Standard said construction on the two production lines was completed in early 2023, with operations beginning shortly afterward.
A fire in December 2023 led to the suspension of activities at the site, which also includes a wastewater treatment plant and two older factory buildings.
The company plans to demolish the older buildings as part of its broader investment, creating room for potential future expansion at the site.
In August, Scandi Standard purchased a poultry processing plant, farms, and land in Lithuania for US$29.9 million.
The company said initial production at the Lithuanian plant is expected to range between 20,000 and 25,000 metric tons this year, integrating the facility into its ready-to-eat poultry business.
