Danish Crown, one of the world’s leading pork exporters, has announced the closure of its processing plant in Pinghu, eastern China, resulting in the layoff of 112 employees. The move comes as part of a broader restructuring strategy aimed at addressing financial challenges and improving the company’s global competitiveness.
The plant, which opened in 2019 near Shanghai, was initially seen as a key investment in Danish Crown’s strategy to expand its footprint in China, the world’s largest pork consumer. However, despite efforts to strengthen operations, the facility struggled to achieve profitability.
“We had high expectations for the plant, but despite our best efforts, the financial results have not met our projections,” Danish Crown stated. As a result, the company has entered into a letter of intent to sell the facility.
This closure is part of a series of cost-cutting measures by the pork giant. In October 2024, Danish Crown announced the shutdown of a major slaughterhouse in Denmark and laid off approximately 500 white-collar employees as it sought to streamline operations. The company continues to navigate a challenging global pork market, balancing production efficiency with shifting consumer demands and economic pressures.
For the swine industry, Danish Crown’s decision highlights the complexities of operating in international markets and underscores the importance of adaptability in the face of shifting market dynamics.
Swine Web will continue to follow this story and provide updates as more details emerge regarding the sale of the Pinghu facility and Danish Crown’s future strategic plans.
