DAT-Schaub buys pharmaceutical plant in the US

There may seem to be no obvious connection between Danish Crown’s slaughtering of pigs, DAT-Schaub’s handling and processing of hog casings and the production of crude heparin, but the connection is actually staring us in the face. Crude heparin is extracted for anticoagulant drugs from the mucous membranes of pig intestines.

For decades, DAT-Schaub has therefore been heavily involved in sales of mucosa and the production of crude heparin in Europe. These activities are now being developed further to include a plant in the town of Oelwein in the state of Iowa.

- This is an attractive market for several reasons. Around 120 million pigs are slaughtered in the US every year, and the potential for extracting mucosa is therefore huge. At the same time, we see a stable demand for crude heparin from the global pharmaceuticals industry, which makes this a sound business venture, says Jan Roelsgaard, CEO of DAT-Schaub.

Standards are high at the Oelwein plant. Moreover, as DAT-Schaub has access to large quantities of raw materials through its US company DCW, the acquisition is a good strategic match.

- As far as I am concerned, we are looking at a very strong business case. We have bought a state-of-the-art factory, we have access to the necessary raw materials, and based on our production in Europe, we are highly experienced at producing and selling to the largest pharmaceutical companies.

One of the objectives set out in Danish Crown’s 4WD strategy is to create a position for DAT-Schaub as a global market leader in the handling and processing of natural casings before the end of 2021. 

Since autumn 2017, DAT-Schaub has established new activities in Spain, South America and China. Now, the US is next in line.

- DAT-Schaub has gained real momentum. The business strategy is clear. In a highly fragmented sector with a relatively large number of minor players, the DAT-Schaub management’s careful acquisition strategy is proving to be the right one. And most importantly, DAT-Schaub delivers strong earnings to our owners, the Danish farmers, says Jais Valeur, Group CEO, Danish Crown.

DAT-Schaub has taken over the factory in Oelwein and expects production to start up soon.

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The Danish Crown group is a global meat processing company and among the largest in its field. 
The group is the World’s largest pork exporter and Europe’s largest pork processor. Danish Crown is Europe’s largest meat processing company and Danish Crown Beef is a significant player in the European beef market.