Danish Crown, one of the world’s largest pork exporters, announced on Thursday that it has closed its factory near Shanghai after a review, stating that the factory did not align with its strategic plans.
The company established a factory in Pinghu Economic Development Zone in Jiaxing, Zhejiang Province in 2019 as its first production base in China to expand its business in the country.
Now, Danish Crown has shut down the factory, laying off 112 employees, and has signed a letter of intent to sell the factory facilities.
Anders Aakær Jensen, Chief Financial Officer of Danish Crown Group, said, “We are well aware that the Pinghu operation doesn’t fit with Danish Crown’s strategy. We lean towards divesting this business and have signed a letter of intent with a preferred buyer, reaching sales terms.”
In a statement, the company mentioned, “Due to ongoing challenges, the factory failed to meet its profit targets as expected, and subsequent improvement efforts did not yield results.”
In recent years, Danish Crown has undergone significant restructuring, closing a major slaughterhouse in Denmark and announcing the reduction of around 500 white-collar positions in October last year.