Danish Crown is ready to open a plant in China
Europe's largest pork processor, Danish Crown it's getting its mark on China meat industry by building a plant in Pinghu, a town situated at approximately 100 km from Shanghai. The facility will be opened in the summer of 2019 and it is expected to produce 14,000 tonnes of processed products annually meant to satisfy the demand for 25 million people in the region.
The group is planning this investment since 2016 as the consumer pattern in China started to look more promising. "Actually three things are happening: Firstly, much of the consumption is moving into food service or restaurants similar to the USA or Europe. Secondly, we see a vast increase of e-Commerce where groceries are bought and delivered at home. This is growing immensely in China and cities such as Shanghai likely have the world’s most advanced e-Commerce market. The third trend is that consumers in supermarkets have also started buying retail packed products precisely as we know from Denmark", explained Jais Valeur, CEO Danish Crown Group.
The investment is to reach 40.2 million euros and it will help the company to have a very strong set up in the Chinese market. "This is one of the chances we should take as a big company and try to see if we can get closer to the market, closer to consumers and further up in the value chain in China – rather than just being a raw material supplier", declared Valeur.
Lately, Danish Crown Group has received a green light to export processed products in China. The agreement comprising pepperoni, salami, frankfurter sausages, hot dogs, canned luncheon meat and canned sausages produced by the subsidiary Tulip Food. Until this year, Danish Crown has exported only fresh pork to China, this market accounting for 5% of its sales.
(Photo source: OE-Community)
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