Sweden-based Scandi Standard announced it has acquired Tyson Foods’ assets in Oosterwolde, Netherlands.
This acquisition involves a facility that had two lines for breaded poultry products, but the plant has been offline since December 2023, when it was badly damaged by a fire.
Scandi Standard is investing EUR28 million (US$28.8 million) in the project, which will include making the necessary repairs sustained by the fire. The repairs are expected to be completed with the plant beginning operations in the third quarter of 2025.
With the Netherlands plant becoming part of Scandi Standard’s operations, it will withdraw its earlier plans to expand its plant in Farre, Denmark – a project deemed less efficient. The expansion in Denmark would have cost about EUR30 million and would have expanded Scandi Standard’s ready-to-eat capacity by 20%, but the assets in the Netherlands will expand that capacity by 90%.
“Through this acquisition, we have secured a robust European ready-to-eat platform for the long term. We have a history of tremendous growth and returns in this segment, primarily derived in the Nordic region. The current transition toward a more pan-European marketplace for frozen breaded products requires us to step up from a Nordic to a leading European player. Following a small drop in demand linked to COVID-19 and inflation, we expect European demand to pick up significantly in the coming years. With limited available capacity in our main production plant in Denmark, we have been looking at how to optimally position Scandi Standard within this segment,” said Jonas Tunestål, CEO of Scandi Standard.
“As the market for breaded products is becoming truly European, cost leadership is a prerequisite to succeed. Typical clients, such as quick service restaurants (QSR’s), require the highest quality standards and contingency capacity in case of disruptions. Our new setup with two separate sites, offer the optimal combination of cost efficiency, processing excellence and contingency capacity. In comparison to a corresponding greenfield, this investment can be carried out without incurring material short/mid-term return dilution and represent a much greater potential.”
Tyson Foods has owned the Oosterwolde assets since 2019. Tyson obtained them as part of a larger transaction with BRF in 2019, which also included four facilities in Thailand and one in the United Kingdom.
Tyson Foods announced during a quarterly earnings call in November that it intended to sell the Netherlands assets, but did not offer further details. Tyson held another quarterly earnings call on February 3 – the same day Scandi Standard announced the acquisition – but Tyson did not address the sale during the call.
Construction of the two state-of-the-art breaded product lines in Oosterwolde was finalized early 2023, after which operations commenced. The site, which also comprises a state-of-the-art wastewater treatment plant and two old factories, suspended operations December 2023 due to a fire.
As part of Scandi Standard’s the overall investment, the two older factories at the Netherlands site are being demolished, leaving more flexibility to develop the property beyond the initial two state-of-the-art beaded lines.
The largest poultry producer in Sweden and the 16th largest in Europe, Scandi Standard slaughtered 177.52 million chickens during the past year, according to information from the WATTPoultry.com Top Poultry Companies Database.
