Aurora Cannabis closing production facility in Denmark
Added on 16 June 2023
The move comes over one year after the company sold its Nordic Sky facility in Odense, Denmark, for roughly 7.5 million Canadian dollars ($5 million) on March 15, 2022.
That sale resulted in a loss of disposal of CA$1.3 million.
The sold facility “refers to a planned second facility in Denmark that the company did not proceed with opening due to the changes in the market,” a company spokesperson told MJBizDaily.
“This is not a reflection of our European business, as our business there remains strong with healthy margins and growth prospects,” the spokesperson said via email.
“However, the Nordic site had many unique challenges beyond our control, that despite our best efforts, could not be overcome.”
The spokesperson also noted that, “following a period of consultation with our employees, Aurora previously announced the closure of our Aurora Nordic facility in Odense, Denmark.
“This decision was not taken lightly, and impacted employees will be fully supported by the company. We thank them for their valuable contributions. ”
The exit caps off a troubled spell for Aurora in the Danish market.
In early 2018, Aurora had envisioned creating “Europe’s largest” medical cannabis producer in Denmark when it unveiled plans to become the second licensed cultivator to build a facility in the Scandinavian country.
The fully built-out facility was expected to produce a stunning 120,000 kilograms (132.3 tons) of medical cannabis annually – significantly more than the European market demands.
Germany, the largest medical cannabis market in Europe by far, imported only 25,000 kilograms of cannabis for medical or scientific purposes in 2022, an increase of 19% over the 20,769 kilograms imported in 2021.
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