Thai Union subsidiary sells assets of closed salmon-smoking facility in Poland

Thai Union European subsidiary Européenne De La Mer has sold the assets of a smoked salmon factory in Dąbrowa Chełmińska, Poland.

Européenne De La Mer supplies salmon and smoked fish products for European market. The buyer of the assets is Polish firm Dobry Pracownik, Thai Union said on 18 May. Under the deal finalized on 13 May, Dobry Pracownik will buy the physical assets of the facility, including land, buildings, and equipment. Thai Uniondeclined to provide the sale price for the assets.

Thai Union announced the decision to close the factory near Bydgoszcz, Poland, in October 2021, citing “highly challenging market conditions and a lack of competitiveness with peers.”

Thai Union reported its net profit in the period spanning January to March 2022 was THB 1.7 billion (USD 49.1 million, EUR 46.7 million), down 3.2 percent from the same period in Q1 2021. The company attributed the decline to the “ongoing impacts of the pandemic and supply chain challenges, [financial exchange] loss, and significantly challenged Red Lobster operations.”

Its operating profit was the same value as its net profit – THB 1.7 billion (USD 49.1 million, EUR 46.7 million) – a drop of 10.9 percent year-on-year. The company cited an increase in logistical costs and marketing expenses as its primary pain-points.

Thai Union said it encountered “unprecedented levels of inflation in Q1 2022, both from key costs and ongoing logistics issues.” A hike in freight rates cost the company THB 710 million (USD 20.5 million, EUR 19.5 million) in the Q1, compared to the THB 200 million (USD 5.8 million, EUR 5.5 million) freight cost in the same period last year.

Photo courtesy of MerAlliance/Thai Union