News Pigs
Danish Crown divests major German slaughterhouse
Danish Crown is planning to sell a large slaughterhouse in Essen, Germany. According to the Danish trade media, the deal is already at an advanced stage. It seems that the location will be sold to Westfleisch, Germany.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
It is not surprising that the two companies have reached an agreement. Danish Crown and Westfleisch have been working together in a joint venture for some time. The slaughterhouse in question is the fifth largest slaughtering location in Germany and has more than 1.000 employees. The turnover of the location is €1,34 billion per year.
New strategy
Danish Crown has been struggling for years. A weak result is also expected for the upcoming annual report. The company expects that divestments in the difficult German market can help it get back on track. The company is fully focusing on its core activities. In August, Danish Crown sold its share in the large Danish logistics company Agri-Norcold.
This also includes a withdrawal from Germany. Danish Crown indicates that the shortage on the German market is the main reason. The company announced in January 2023 that it would reduce its share of the German market because scarcity means that prices there are simply too high. The announcement was immediately followed by the closure of the location in Boizenburg.
Vion
Foreign players have been withdrawing from the German market more often in recent years. For example, Vion is withdrawing completely from the German market. The largest Dutch slaughterhouse recently closed a deal about the beef locations with Tönnies. The sale of the last pig slaughterhouses is yet to follow. Even before the announcement of the departure from Germany, Vion sold off several slaughterhouses.