October 29, 2009

Danish Crown, Europe's largest pork processor, has confirmed it will pull the plug on all domestic investments, which it no longer can afford, as part of a comprehensive cutback plan aimed at reducing costs by DKK1.6 billion (US$316.5 million) before year-end.

Danish Crown is a Danish company, but only 16 percent of its operations are located in Denmark. Most work are handled in Germany, Poland and the UK.

Danish Crown is pulling out of domestic investments because of wage differences. Slaughterhouse employees in Denmark earn DKK56 (US$11.1) more per hour than in Germany and the UK, and the wage difference is even greater in Poland.

Details of Danish Crown's savings plan has not yet been released, but negotiations with its employees are ongoing.