Danish Crown has disclosed plan to discontinue its processed meat factory operation in Pinghu, near Shanghai following a strategic review.
The facility, established in 2019, was part of Danish Crown’s expansion strategy in China. However, despite attempts to improve performance, the company faced ongoing profitability challenges at the site. A recent strategic review initiated by Danish Crown’s new executive management team concluded that continuing its operation in Pinghu was no longer a viable option.
Danish Crown Group CFO Anders Aakær Jensen said, “It is clear to us that the operations in Pinghu is not the right strategic fit for Danish Crown. Our preference is to divest the business, and we can confirm that we have signed a letter of intent with a preferred buyer and agreed terms for a divestment. While these talks are promising, we expect they will still take a few months to conclude.”
The company is currently considering 2 options i.e. either to sell the facility, or to close it and repurposing the equipment within its global supply chain.
Earlier this year, Danish Crown had also announced plan to close its pre-packaged meat division in Germany.
