Danish Crown’s DAT-Schaub enters US market with plant acquisition

By Ashley Williams

- Last updated on GMT

DAT-Schaub has entered the US market with the acquisition of a pharmaceutical plant
DAT-Schaub has entered the US market with the acquisition of a pharmaceutical plant

Related tags: Processing equipment & plant design

Danish Crown subsidiary DAT-Schaub has acquired a pharmaceutical plant in Iowa, US, that produces crude heparin for drugs used to thin blood.

The plant, located in Oelwein, will be used for the production of crude heparin, which is extracted for anticoagulant drugs from the mucous membranes of pig intestines.

DAT-Schaub will use the production site to sell the anticoagulant drugs to some of the largest pharmaceutical companies across the world. 

DAT-Schaub’s CEO Jan Roelsgaard said the acquisition was a good strategic match as the firm had access to large quantities of raw materials through its US company DCW.

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​,” said Roelsgaard. “At the same time, we see a stable demand for crude heparin from the global pharmaceuticals industry, which makes this a sound business venture​.”

DAT-Schaub has been heavily involved in sales of mucosa and the production of crude heparin in Europe.

The Danish Crown subsidiary has established new activities in Spain, South America and China over the past two years and is now turning its attentions to the US market.

Most recently, DAT-Schaub acquired a majority stake​ in Shanghai Natural Casing Company to gain additional capacity to select and process natural casings for sausage and salami production.

As part of Danish Crown’s 4WD strategy, DAT-Schaub has been set a target to become a global market leader in the handling and processing of natural casings before the end of 2021.

Danish Crown’s CEO Jais Valeur said DAT-Schaub had gained real momentum to fulfil the business’ strategic goals.

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​,” said Valeur. “And, most importantly, DAT-Schaub delivers strong earnings to our owners, the Danish farmers​.”

Related topics: Meat

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