Tulip in Sdr. Borup recommended for closure

Randers, August 28, 2009


At today’s extraordinary meeting Tulip Food Company’s board of directors decided to recommend the closing down of Tulip’s factory in Sdr. Borup near Randers at the end of December. The factory staff was informed at 12 o’clock.

The closure is part of the efforts to make the Tulip production more efficient and also part of the Danish Crown action plan published earlier this year. The plan mentioned that it would be necessary to close down one or two plants in Denmark and this included Tulip’s factory in Sdr. Borup.

- The competition in the food industry is stiff and requires an efficient utilisation of all the company assets. At present Tulip have 10 factories and four of them are producing sausages and sliced cooked meats. That is too many if we are to optimise our capacity. Hence the decision to close down the Sdr. Borup factory, says Managing Director Flemming N. Enevoldsen.

The closure will affect approx. 170 employees.

- I am, of course, affected by the fact that approx. 170 competent employees will now be out of work, but I am also optimistic. Tulip will try to help the redundant employees find alternative employment and experience shows that the majority quickly find a new job. We hope that this will also be the case for our redundant employees, but I realise that the financial crisis will make it more difficult, says Flemming N. Enevoldsen.

The production from the Sdr. Broup factory will be transferred to Tulip’s other factories.

After the closing down of the Sdr. Borup factory, Tulip will have nine factories - six in Denmark, two in Germany and one in Sweden.