Tulip considering workforce, shift changes
July 26, 2017
by MEAT+POULTRY Staff
The unit of Danish Crown cited a loss of customer orders as a reason for streamlining operations.
RANDERS, Denmark – Despite a nascent turnaround, executives at Tulip Ltd., a unit of Danish Crown based in England, are considering strategies to offset declining production volumes and operational efficiencies.
The move comes even as Tulip has become profitable as of late. The Danish Crown subsidiary was losing money on a weekly basis during the summer a year ago after the loss of major orders from retailers. But since June, the downward trend has reversed.
But to maintain positive momentum, workers at the King’s Lynn processing plant were notified that Tulip leadership is considering a five-day work week, reverting from the current seven-day week. At least 118 jobs are at risk, according to the company.
“Due to the loss of customer orders over the last few years, the site is now making significant loss on a weekly basis,” Tulip CEO Steve Francis said in a statement. “Now we are looking to take steps which will keep the Kings Lynn site operational for current and future generations. The business will engage closely with the employee representatives and those affected in order to minimize impact on people’s lives.”
Jais Valeur, Danish Crown Group CEO, noted that Tulip still has a long way to go. “When we look at the full year, the financial result in Tulip Ltd. will continue and as expected show a significant loss,” he explained. “This is really a pity, but I am delighted to see the rising effects of the changes, because there is no doubt Tulip Ltd. is basically a strong company. Now we need to keep momentum and continue the progress made so that the UK business can once again contribute positively to earnings in Danish Crown in the upcoming financial year.”