Danish Crown – new factory to be built in US
Danish Crown is now ready with plans for a new factory in Council Bluffs in the US to future-proof Plumrose USA, which has had problems in recent years keeping up with demand.
Solid organic growth and extensive cooperation with the largest American supermarket chains in recent years explains why Plumrose USA has found it difficult to keep pace with the interest in its products.
Danish Crown now plans to build a new cold cut factory in Council Bluffs, Iowa, to safeguard Plumrose USA’s future competitiveness.
”We are experiencing increasing competition worldwide, also in the US. However, we have managed to generate organic growth over the years – despite the fact that our factory structure is outdated. It is therefore vital that we build a new facility to meet future demand. In recent years, the present factory has been running six to seven days a week to keep pace, but the cold cut production line is now fully utilized. Gearing Plumrose USA for the future thus requires that we build a new cold cut factory,” says Chairman of Plumrose USA, Flemming N. Enevoldsen.
Flemming N. Enevoldsen stresses that the investment in a new facility is necessary whatever the shape of Danish Crown’s future ownership structure.
”Regardless of Danish Crown’s ownership structure, we can only maintain Plumrose’s value by ensuring a competitive factory structure. The production costs at the new factory will be significantly lower – both due to increased automation and reduced labor costs and, in addition, due to significantly lower transportation costs between the existing facilities, says Flemming N. Enevoldsen
The first sod will be cut in Council Bluffs on 1 October 2011, and the new factory is expected to be completed in about 12 months.
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