Danish Crown invests in Swedish Meat Packing Factory

Randers, 14th August 2007

Danish Crown has decided to establish production of retail packed fresh meat in Sweden in cooperation with one of the major Swedish retail companies – Axfood.

Today, Axfood published their decision to enter into cooperation with Danish Crown on the project, which involves the set-up of a new production plant in Southern Sweden.
- Sweden is one of our strategic markets, and we have good working relationships with the Swedish retail trade. At the same time our competences on other markets in relation to retail packing of fresh meat have made it natural for us to participate in this long-term project with Axfood”, says Danish Crown CEO Kjeld Johannesen.

The production includes cutting and retail packing of fresh meat for the cold counters of the Swedish supermarkets under Axfood – Hemköp and Willys. The work of project engineering and preparation of the production has already been started.


Today’’s press release from Axfood:

Axfood chooses Danish Crown for packing of meat
From the beginning of 2009, Axfood’’s retail packed meat will be processed on Sweden’’s state-of-the-art meat packing factory. The plant will be located in Southern Sweden and operated by Danish Crown.
- We have agreed with Danish Crown that they build the plant for packing of the main part of all meat sold in Hemköp and Willys shops, says Torbjörn Lithell, Business Area Manager for meat in Axfood.

The agreement with Danish Crown extends only to the packing. As before, the meat will be delivered by the suppliers assigned by Axfood.
- It is important for us to select our suppliers, based on quality, price, and nationality, says Torbjörn Lithell. Therefore, this is an agreement which solely involves processing and not the meat proper.

Danish Crown is a leading player on the European meat packing market and one of the world’’s largest suppliers of pigmeat.
- We need a plant with more capacity than we have today, says Torbjörn Lithell. But it is not only about quantities. Danish Crown has several plants of this type all over Europe, and it is our assessment that their plants are most up-to-date and warrant the highest quality.

The plant will take up approx. 8,000 sq m. Its location has not yet been decided. When in operation, the factory will employ about 130 persons.