Plans for a new joint head office for Danish Crown and Tulip Food Company were announced a year ago, but have now been put on hold.
The idea was to transform a former sausage factory in Randers into a modern office building with 23,000 square metres of floor space.
Jais Valeur, group CEO, said: “We are postponing the construction of our new head office, which will no doubt be a disappointment for our employees in Randers.”
Danish Crown explains the situation is that the difference between the cost of producing a pig and the price at which it can be sold is being pressured by the low pig prices.
As a result, the company has decided it does not feel that it is the right time to go ahead with the project.
Valeur added: “Having Danish Crown and Tulip Food Company move in together still makes a lot of sense, but it will not happen at the beginning of 2020 as originally planned.”
The company is also planning to automate a number of administrative functions in a new Global Services Centre in Poland.
This will mean transferring approximately 50 jobs from Randers to Krakow and will also mean some job cuts.
Valeur said: “We continuously review our strategy, and in three specific areas we have decided to strengthen our efforts as we believe this will benefit the group in both the short and the long term.
“However, these are not easy decisions to make as it means saying goodbye to a number of employees in different parts of the organisation.”
The company’s new initiatives that were announced back in November 2016 are said to be underway. Once fully implemented, the transfer is expected to generate annual savings of around 40 million DKK.
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
