Danish Crown forced to adjust capacity

 

Randers, 31 March 2008

The slaughterhouse in Skive and the deboning unit in Hurup to be shut down

The pork division at Danish Crown decided Monday morning to propose closing down the slaughterhouse in Skive and the deboning unit in Hurup at the end of June 2008.

The reason for the decision is the need for adjustment of capacity to a lower number of slaughterings, as the surplus slaughterings have disappeared after the two large fires in 2007.

- The result of the fires meant that slaughterings at Danish Crown had fallen behind and through an increased efficiency and smaller expansions on a number of plants, the capacity has been 400,000 slaughter pigs per week. Normal conditions are back and this means that we are forced to adjust capacity to 350,000 slaughter pigs per week, says Jens Haven Christiansen, Division Director at Danish Crown.

In the summer of 2007 the slaughterhouse in Skive was hit by a large fire and this is one of the main reasons why the slaughterhouse is now being shut down. Skive has also been supplier of raw materials to the deboning unit in Hurup and is therefore also shut down.

Closing down these units will affect 150 employees at Hurup and approx. 300 employees in Skive. Danish Crown’s social plan will take effect immediately and like other earlier closures, a job bank will be established immediately to help employees find new job opportunities.

- Based on previous experiences we have reason to believe that we will be able to help employees in relatively short time – either at other sites at Danish Crown or at other companies, says Jens Haven Christiansen.

The adjustment of the capacity appears together with the fact that prognoses point at a general decrease in the Danish pig slaughter production. This means that there is a long-term intention of adjustments at the Danish Crown Group.

- If the present development in Danish pig production continues, further adjustments may be required within the next year. If so, we may be forced to close down the slaughterhouse in Vojens in line with completion of a top modern slaughterhouse in Blans – either at the end of 2008 or at the beginning of 2009. The completion of Blans will result in increased capacity, says Jens Haven Christiansen.