“We are experiencing increasing competition worldwide, also in the US,” said Flemming Enevoldsen, Plumrose USA chairman. “However, we have managed to generate organic growth over the years – despite the fact our factory structure is outdated. It is therefore vital we build a new facility to meet future demand. In recent years, the present factory has been running six to seven days a week to keep pace, but the cold-cut production line is now fully utilized. Gearing Plumrose USA for the future thus requires that we build a new cold-cut factory.”
Enevoldsen stressed the investment in a new facility is necessary whatever the shape of Danish Crown’s future ownership structure.
“Regardless of Danish Crown’s ownership structure, we can only maintain Plumrose’s value by ensuring a competitive factory structure,” he adds. “The production costs at the new factory will be significantly lower – both due to increased automation and reduced labor costs and, in addition, due to significantly lower transportation costs between the existing facilities.”
Construction of the new Council Bluffs plant is expected to begin on Oct. 1, and the new factory is expected to be completed in 12 months. More details on this project were not announced.
