Tican plans to shut its Ansager facility after losing ground in the UK pork sector, a move that will save it an estimated 15m Danish kroner (€2m) per year, Ove Thejls, the company’s chief executive, told GlobalMeatNews.
“We have to protect our market share in the UK group and by doing this, we will increase our competitiveness in the UK market,” Thejls said.
“Over the last few years we have lost ground to our competitors, which are mainly UK processors, plus Germany and other Danish processors.”
‘Worst case’
Thejls identified UK pork processors such as Tulip, Cranswick and Karro Food Group as among the company’s major rivals.
The move follows the acquisition of Tican by German food group Tönnies in February 2016.
Tican’s production for the UK market is expected to relocate to Germany before ultimately moving to Becketts Foods in Coventry and Direct Table Foods in Saxham, both of which are owned by Tönnies.
‘Positive development’ for new jobs
Thejls, told GlobalMeatNews the loss of 80 jobs would be a “worst-case” scenario. A few workers will be repositioned, but the majority of them are likely to be laid off by the time production transfers on 1 October 2016.
Some 25 employees in the bacon facility at Ansager will be affected, together with a further 55 in the pork-deboning plant at Thisted.
“It is obviously regrettable that this decision in the short term leads to loss of jobs in Denmark, but we keep working hard with plans for growth and investments in other areas, which in time is expected to lead to a positive development in employment,” Thejls said in an earlier statement.