Scandi Standard acquires Tyson Foods factory

The Danish poultry processor Scandi Standard has acquired the production facilities of Tyson Foods in Oosterwolde. The location, which features two of Europe’s most efficient production lines for breaded chicken products, suffered fire damage in December 2023. After the necessary repairs, Scandi Standard expects operations to resume in the third quarter of 2025. The total investment amounts to 28 million euros and will be financed through existing credit facilities.

Strategic capacity boost

The acquisition provides Scandi Standard with a capacity increase of no less than 90% in the Ready-to-Eat market. As a result, the planned 30-million-euro expansion of the Farre plant in Denmark has been cancelled. This alternative turned out to be not only cheaper but also more efficient, given the growing demand for breaded products across Europe. CEO Jonas Tunestål emphasized the strategic importance: “We are growing from a strong Nordic player into a European market leader. With limited space in our Danish facility, this is the optimal positioning for future growth.”

In 2024, Scandi Standard held a 5% market share in the European market for breaded products, with 36,000 tonnes in net sales. The market is expected to grow by an additional 60,000 tonnes by 2029. Over the past ten years, the company has achieved organic growth of 430% in the Ready-to-Eat category.

Dual-site certainty with cost advantages

The acquisition fits within the European trend toward larger-scale production and stricter requirements from clients like quick service restaurants. Tunestål: “With two separate sites, we combine cost advantages with high-quality production and contingency capacity in case of disruptions. Compared to a greenfield project, this investment is far more attractive and does not immediately impact our returns.”

The initial construction of the state-of-the-art production lines was completed in 2023 but was temporarily halted due to the fire. The old factories are now being demolished to create room for future expansions.

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