Danish Crown adjusts capacity in Ringsted

13-03-2015 | | |
Danish Crown adjusts capacity in Ringsted
Danish Crown adjusts capacity in Ringsted

After several years of falling slaughter pig production in Denmark, Danish Crown is again having to adjust slaughtering capacity at its Danish pig slaughterhouses.

Today, the Board of Directors of DC Pork has recommended that much of the slaughtering capacity at the slaughterhouse in Ringsted is closed down over the coming summer.

The plan is that capacity at the slaughterhouse is reduced by approx. 15,000 slaughter pigs a week, an adjustment that will affect approx. 280 employees.

“For some time now, we have been transporting slaughter pigs across Denmark to utilise capacity in Ringsted, which is not a sensible solution. Basically, not enough pigs are being produced on Zealand at the moment to warrant a slaughterhouse of this size,” explains Søren F. Eriksen, vice president production, Danish Crown.

Danish slaughter pig production is continuing to fall, which translates into surplus capacity at Danish Crown’s slaughterhouses in Denmark.

“The only sensible way of cutting capacity is by closing down whole units, and in fact this is the first time that we are closing down half a slaughterhouse. However, the Ringsted facility is designed in such a way that it now runs more slaughter lines than other slaughterhouses. Therefore it is possible to physically remove two of the slaughter lines and thereby also realise savings related to maintenance and other overheads. At the end of the day, it is all about ensuring that the owners are paid the best possible price for their pigs so that we can continue to slaughter pigs in Denmark,” says Eriksen.

Closing the two slaughter lines will be a two-step process – the first step being taken in mid-June, and the second in mid-September this year. Should slaughter pig production start growing again on Zealand, this solution will make it possible to increase capacity at the slaughterhouse – possibly by introducing an evening shift.

In accordance with the agreements in connection with job cuts, a job bank will be established and social plans drawn up for each employee affected by the closure.

Contributors Global Pig Production Authors