Food giant Orkla is set to close one of its pasta factories in Denmark starting next year.
According to the Nordic pasta manufacturer, the closure will affect the “small production site” located in Skovlund. This facility currently produces pasta exclusively for the Dragsbæk brand, which is part of the Orkla family.
The production site, which employs around 20 individuals, will support workers in their search for new employment opportunities, as reported by the Danish newspaper JydskeVestkysten.
A recent statement from Orkla Denmark indicated: “Dragsbæk has decided to move the production elsewhere. All other production in Orkla Denmark continues unchanged.”
However, further commenting on the job cuts, a statement from Dragsbæk A/S clarified: “The factory in Skovlund has been owned and operated by Orkla in recent years.”
“Dragsbæk has not been involved in the ownership or management of the site, and we are therefore not in a position to comment on staffing or internal matters related to the closure.”
Furthermore, the statement noted: “The closure does not affect Dragsbæk’s own production setup. We continue to operate four factories in Jutland, Denmark, and our business remains unchanged.”
“The products previously produced at Skovlund will now be sourced through external partners, which is a natural part of our setup.”
“Fortunately, we have a very flexible and efficient structure in Dragsbæk, enabling us to react quickly when such changes occur.”
In related news, Orkla’s Indian unit recently announced its intention to launch an initial public offering (IPO) after receiving regulatory clearance to list its equity shares on domestic exchanges.
Earlier this year, Orkla also sold its 49% stake in Eace Gum, a functional chewing gum startup based in Denmark. The Nordic group had initially invested in Eace Gum back in 2021 with a 30% interest.
