Danish meat producer Danish Crown’s subsidiary DAT-Schaub has acquired a majority stake in the Shanghai Natural Casing Company for an undisclosed fee.
The Shanghai Natural Casing Company produces a range of natural casings for products such as salami and sausages, and previously supplied these casings to US-based meat producer DCW Casing, in which DAT-Schaub holds a majority stake.
Danish Crown claims this acquisition was necessary as DAT-Schaub needed to add additional production capacity to its manufacturing network in order to become a global market leader in natural casing processing.
DAT-Schaub produces an extensive range of natural casings derived from pigs and sheep, and operates several manufacturing facilities in Portugal and China.
Jan Roelsgaard, CEO, DAT-Schaub said: “China is the centre for selecting and processing in a labour-intensive industry like ours.
At the same time, the country is well positioned geographically because the raw materials come from Europe, the US and Australia.
“There is a strong infrastructure to and from the Shanghai area, and the employees are meticulous and quality conscious, which is essential in our business.
“(The Shanghai Natural Casings Company) is a well-managed company, but it’s still possible to enlarge the capacity, which is essential for handling the rising volumes of raw materials we’ve gained access to over the past year.”
Jais Valeur, group CEO of Danish Crown added: “DAT-Schaub has a strong brand and sells its products all over the world. Over the past financial year, the company generated a record-setting profit.
“In my view, this is a perfect set off to become the undisputed market leader globally, which is also our clear – and definitely realistic – ambition.”
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