Danish Crown shuts down China factory

Danish Crown is closing its factory in Pinghu, China, resulting in the loss of 112 jobs after failing to achieve expected earnings. The factory, opened in 2019, has led the company to a total loss of about one billion Danish kroner. Previous write-downs on the value of Chinese investments mean no further financial setbacks are expected. A tentative sale agreement of the factory is in place, with clarification on its future expected by summer. The closure marks a continuation of cutbacks for the struggling corporation, which reported a 29% earning decrease in 2023/24. A deal with Alibaba’s subsidiaries to buy the factory’s entire production for five years was cancelled due to the pandemic, contributing to persistent losses and unsuccessful revival attempts.