Danish Crown’s Beef Division cuts capacity

Randers, 27 march 2009

The Beef Division has decided to recommend that the departments in Gimsing and Holstebro East be closed down. The proposal will mean the loss of 85 jobs at the cutting facility in Gimsing, while 23 employees working at the cutting facility and the office in Holstebro East will be affected by the decision. The central packaging of edible by-products and the fat-rendering plants at Holstebro East will not be affected.

“It is, of course, extremely regrettable to have to cut capacity in the current situation, but in our opinion the departments are no longer profitable. Our owners are under considerable financial pressure, and we have to continuously consider possible cost-cutting measures so we can pay as high prices as possible to our producers. At the same time, considerable investments would be required to ensure that the departments in question could survive the competition,” says Lorenz Hansen, Managing Director of Danish Crown’s Beef Division.

Lorenz Hansen explains that those made redundant will be offered any job vacancies which may exist at the nearby departments.
The employees at the two departments have been informed of the proposal today, and negotiations have been initiated with them concerning the closures. Danish Crown’s social plan will apply, and a job bank will be set up for those affected.

According to the proposal, production from Gimsing will be moved to the departments in Husum and Skjern, while production from Holstebro East will be taken over by the departments in Tønder and Aalborg.