Kalundborg is a coastal town in Denmark with a population of around 16,000. The town is witnessing a transformation almost similar to a modern-day gold rush. This transformation has been brought about largely due to the pharmaceutical giant Novo Nordisk, which has invested more than $8.5 billion (£6.5 billion) in the area.
The town serves as the main production center for semaglutide, the active ingredient used in the popular weight-loss drug Wegovy and the diabetes medication Ozempic. This investment equates to the entire GDP of Monaco and marks the coming of Kalundborg to the pharmaceutical industry.
Novo Nordisk’s expansion would add about 1,250 jobs in addition to the 4,500 already working in its Kalundborg plant. The company’s operations account for approximately 1% of the Danish workforce and play an important role in the Danish economic landscape. Denmark’s economy grew by 1.1% in the first nine months of 2023, but excluding the pharmaceutical sector it was contracting at 0.8%. This tends to raise concern over how sustainable such growth is, or the level of risk if the pharmaceuticals sector came under some challenge.
There is good growth of local businesses, especially supermarkets and bakeries, around these factories because of factory workers coming out to dine during their lunch breaks. Clothing and footwear retailers are the exception among shops, however; in any case, they would also not be able to get their employees to commute, for most of them will travel from surrounding communities instead of living in Kalundborg. This would often mean that during morning peak time there is a substantial level of traffic congestion-the term the locals use being “Novo Queue”. So infrastructure has a job of sustaining the growing number of employees.
The town faces extreme educational issues because the state school attainment in Danish language and mathematics is below the national average figure. Many of the schools are underprepared, and especially those in the outlying districts, hence lowering the parents’ expectations and even that of the children. According to councillor Helle Laursen Petersen, there is a reason that there are fewer qualified teachers because people view that their jobs at the Novo Nordisk factory require very little education.
Kalundborg suffers from health problems, for example, very high numbers of obese children, classifying it among the most problematic 5% cities in Denmark with this respect. This kind of a health crisis poses questions toward lifestyle and possibilities of conditions for healthy life in society.
Some young people report that they are eager to be out of Kalundborg to go to larger Danish cities, whereas others mention that they may return later after finishing studies. The students in the Gymnasium-the region’s most academic secondary school-represent a split view about the future of the town. While, for instance, Ali and Marie can speak enthusiastically of the beauty of the place and its future, a bright outlook for jobs in the future does not exist.
What are the infrastructures being improved and building new highways? Do you consider the mayor optimistic with respect to future investments in education and infrastructure for improved life and population growth?
Kalundborg has arrived at a crossroads: maintaining the impressive economic development based on the lever of growth generated by Novo Nordisk against serious social challenges. Its future, therefore, will depend on attracting a permanent population and developing education and health systems critical to the population’s success. The hope of its young people and investments in local infrastructure during this transformational time would define the identity and sustainability of Kalundborg. But before this could become a vibrant and multicultural community, it has to be met by the town that confronts its problems.