#51 - Business news from the Economic Mission of the French Embassy in Denmark [fr]

Business news from the Economic Mission – 01.25.2020

Disclaimer - The Economic Mission strives to provide accurate and up-to-date information and will correct, to the extent possible, any errors that are brought to our attention. However, it cannot be held responsible for the use and interpretation of the information contained in this publication.

ECONOMY AND RECOVERY

Launch of a new "Revitalization Fund" to recapitalize some large Danish companies. Following the phasing out of aid programs at the end of 2020, a political agreement has been reached to launch a new public fund to strengthen equity capital, Danmarks Genopretningsfond, aimed at large Danish companies in difficulty (with a turnover in excess of €67M). Entirely owned by the Danish State, it will act as an "investor of last resort", in the form of investment against issuance of preferred shares, but without decision-making influence. With an initial budget of €1.35 billion, this Danish Recovery Fund is now operational, after receiving the European Commission’s approval for State aid. Finans

A 15% drop in Danish private consumption in the last week of 2020 compared to the same period in 2019. According to bank data from Nordea and Danske Bank, the new "lockdown" measures weigh on Danish consumption with the same intensity as the spring restrictions of 2020. However, this decrease starts from a higher initial level of consumption, due to a peak in consumption before the restrictions came into force in December, following the payment of DKK 51 billion (€6.86 billion) in vacation pay to the Danes. Reduced consumption in stores (-35%) was the main reason for the decrease, while online consumption increased by 44%. Finans

Employment in the Danish construction sector has returned to its pre-coronavirus crisis level, reaching its highest level since 2008. From the third to the fourth quarter of 2020, employment in construction increased by 2.3% to 181,200 employees. This increase contrasts with the general trend in private sector employment in Denmark, which is still far from having returned to its pre-crisis level. This positive development specific to the construction sector can be explained by a dynamic housing market, by measures to support public investment, including the removal of the construction ceiling for local authority public works and the progress of planned works, and by the doubling of the tax deduction for individuals undertaking work. Børsen

BREXIT

Fears that the Brexit could trigger chaotic scenes and endless queues in the ports are already far away:
trucks are rolling and exports of butter and dairy products (Arla, Nordex), bacon (Danish Crown) and other Danish products to the UK seem to continue without major disruptions, and without delays, at the beginning of 2021. This is partly due to the good preparation of the ports, transport companies and EU authorities, which have increased their capacity - both physically in the form of new road facilities and in terms of the necessary technology and manpower. But the director of the port of Esbjerg is still waiting to see whether this situation will continue, when the British gradually set up their checkpoints during the spring and summer of 2021. Finans

TRADE

Danish exports increased by 3.3% in November 2020. This increase seems to prejudge the prospect of a continued recovery in exports during the year 2021, while they had fallen by 9% in the first eleven months of 2020 compared to the same period in 2019. November’s increase in exports is partly due to a sharp rise in exports of pharmaceutical products (+22%), which can fluctuate greatly from month to month. It mainly represents an increase in exports to non-EU countries, those to EU countries having decreased by 0.3%. Finans, Berlingske

Danish pork exports reached a record high in 2020, mainly due to exports to China, which increased by 66% in volume and 80% in value. In the first 10 months of 2020, Danish slaughterhouses exported DKK 30.7 billion (€4.13 billion) of pork, of which DKK 8.3 billion (€1.12 billion) went to China, which has become the largest importer of Danish pork. This is all the more of a record as restaurants, hotels and other food sector establishments in Europe, which are usually among the largest consumers of Danish pork, were closed for part of the year due to health restrictions. Finans

GREEN TRANSITION - ENERGY

Denmark’s largest offshore wind farm, Kriegens Flak, is ready to provide green energy. In the long term, it will be able to supply the equivalent of the annual electricity consumption of 600,000 households, a capacity of 600 MW, almost 50% more than the previously developed offshore wind farm, Horns Rev 3. By the end of 2021 at the latest, the entire wind farm is expected to be fully connected to the power grid. Vattenfall is responsible for the operation of the wind farm, after winning the tender in 2015. Finans

Danish companies placed an ad in the January 20 edition of the New York Times, calling on the 46th president of the United States to work together to "build a green future together". The eight companies that, together with Dansk Industri, signed the announcement are Haldor Topsøe, Grundfos, Siemens Gamesa, Cowi, Ramboll, Semco Maritime, Copenhagen Infrastructure Partners (CIP) and Kamstrup. They offer with one voice to come together and share their solutions, data and knowledge to achieve the green ambition of Joe Biden’s program. Børsen

DIGITAL

Facebook is working on an extension of its data center in Odense. In September 2019, Facebook established itself in Denmark by inaugurating a 55,000 square meter data center in Tietgenbyen, in the southeast of Odense. The extension, which is currently under discussion with the municipality of Odense, includes two new 20-meter high rooms for a total of 95,000 additional square meters. This project would require razing two adjacent plots of forest, but Facebook has already committed to replanting twice as much elsewhere. Berlingske

Dernière modification : 26/01/2021

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