DAT-Schaub's US Pharmaceutical Plant Acquisition
While it may not initially appear that there is a link between the pig slaughtering activities of Danish Crown, the processing and handling of hog casings by DAT-Schaub, and the production of crude heparin, the connection is actually quite clear. Crude heparin, a key ingredient in anticoagulant drugs, is derived from the mucous membranes of pig intestines. For many years, DAT-Schaub has been deeply involved in the European market for mucosa sales and crude heparin production. Now, these operations are expanding to include a facility in Oelwein, Iowa. The US market is appealing for several reasons. Approximately 120 million pigs are slaughtered in the US annually, providing a vast source of mucosa. Additionally, the global pharmaceutical industry maintains a steady demand for crude heparin, making this a viable business opportunity, according to Jan Roelsgaard, CEO of DAT-Schaub. The Oelwein facility maintains high standards, and with DAT-Schaub's access to ample raw materials through its US subsidiary DCW, the acquisition is a strategic fit. Roelsgaard believes this is a strong business proposition. They have acquired a cutting-edge factory, have access to the necessary raw materials, and have extensive experience in production and sales to major pharmaceutical companies based on their European operations. One of the goals of Danish Crown’s 4WD strategy is to establish DAT-Schaub as a global leader in the processing and handling of natural casings by the end of 2021. Since the fall of 2017, DAT-Schaub has launched new operations in Spain, South America, and China. The US is the next target. DAT-Schaub is on a roll, according to Jais Valeur, Group CEO of Danish Crown. In a sector characterized by fragmentation and a large number of smaller players, DAT-Schaub's cautious acquisition strategy is proving successful. Most importantly, DAT-Schaub is generating substantial profits for its owners, Danish farmers. DAT-Schaub has taken over the Oelwein factory and anticipates production will commence shortly.
