Meat producer Danish Crown said on Thursday it had closed its factory in Pinghu in eastern China, resulting in the layoff of 112 employees.
The facility, established in 2019 near Shanghai, was intended to expand Danish Crown’s presence in the Chinese market. However, despite significant efforts to rectify initial challenges, the plant consistently underperformed and failed to meet expected earnings. Consequently, Danish Crown has signed a letter of intent to sell the facility.
This decision aligns with Danish Crown’s recent strategic restructuring efforts. In recent years, the company has closed one of its major slaughterhouses in Denmark and, as of October 2024, announced plans to cut approximately 500 white-collar jobs.
The Pinghu plant, which commenced operations in 2019, faced challenges from the outset. Despite substantial investments and attempts to improve its performance, the facility did not achieve the anticipated financial results. The closure reflects Danish Crown’s commitment to optimizing its operations and focusing on areas that align with its strategic objectives.
Danish Crown, a farmer-owned company and one of the world’s largest pork exporters, continues to adapt its global operations in response to market demands and internal assessments. The sale of the Pinghu facility is a step towards ensuring the company’s resources are effectively allocated to support sustainable growth and profitability.
Source: Danish Crown
