Denmark-based meat co-operative Danish Crown, plans to expand its manufacturing capacity in the US to meet demand for its products.
Danish Crown is set to build a cold cut facility at its existing site in Council Bluffs in Iowa. The company said the investment is needed to “safeguard” the “future competitiveness” of local subsidairy Plumrose USA.
Go deeper with GlobalData
A spokesperson said demand for Plumrose’s products in the US exceeds the site’s capacity, which has been running up to seven days a week to keep pace with demand.
The current facility at Council Bluffs will remain in operation but Plumrose USA chairman Flemming Enevoldsen said the investment in a new plant was “necessary”.
“The production costs at the new factory will be significantly lower – both due to increased automation and reduced labour costs and, in addition, due to significantly lower transportation costs between the existing facilities,” Enevoldsen said.
Building will start on the factory in Council Bluffs on 1 October and is expected to be completed in about 12 months.
