Kronfågel plans expansion in Valla and closing in Kristianstad

Lantmännen Kronfågel wishes to consolidate all Swedish chicken production to its plant in Valla. 175 employees in Kristianstad may receive notice of termination. The structural change is required to secure the company’s future profitability and competitiveness. Co-determination negotiations have begun and the changes are expected to come into effect during 2010-2011.

Lantmännen Kronfågel’s decision is based on the need to secure a profitable production that would give the company an edge on the very competitive chicken market. The over-capacity production of the two plants of today is not sustainable, which is why a decision has been made to consolidate. Kronfågel’s total production remains unchanged, at 37 million chickens a year.

"Valla in the municipality of Katrineholm is one of Europe’s most modern production facilities for chicken and has a good development potential , which is why we choose to invest here. Our goal is to continue to meet the demand for chicken, but in another shape. We are sorry to have to give bad news to our talented co-workers in Kristianstad, but the change is necessary to create a profitable business for the future,” says Jan K. Henriksen, CEO of Lantmännen Kronfågel Holding AB.

Employees have received information today, September 3. All employees in Kristianstad are offered to apply for the vacant jobs in Valla. Approximately 90 blue-collar and 15 white-collar jobs are estimated to be created in Valla. In total, approximately 372 employees will be working at the Valla plant at the beginning of 2011. At the same time, the company will be liquidating about 70 blue-collar and white-collar jobs. Headquarters will remain in Stockholm.

Lantmännen Kronfågel’s breeders have been notified and discussions regarding how to best solve the situation for concerned breeders have begun.

Lantmännen Kronfågel – Sweden’s leading chicken producer

Lantmännen Kronfågel is Sweden’s leading chicken producer, with 55 percent of the total market. When these structural changes have been made, Kronfågel will have approximately 430 employees in Sweden.

 

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