HKScan is planning a renewal of its Group-wide operating model

Press release, HKScan Corporation, 22 October 2019, at 10.00 EEST

HKScan is planning to renew its Group-wide operating model and is launching the related processes. At the same time, HKScan is also evaluating the need to improve its operational efficiency in Finland. The planned operating model renewal is not expected to lead to a headcount reduction in any of the company’s market areas outside Finland.

Plans regarding HKScan’s Group-wide new operating model and related partial organizational change will be reviewed in statutory negotiations in Finland and Sweden as well as in other preparation processes that will be implemented in line with each other country’s legislation and practices. The plans related to the new operating model cover HKScan’s personnel in all operating countries, excluding blue-collar employees. The planned operating model renewal would mainly target changes in the white-collar employee reporting lines, which is not expected to have a major impact on the Group’s number of employees or employment terms. It is estimated that the planned operating model renewal can possibly lead to headcount reductions or material changes in employment contracts only in Finland. 

“The planned operating model renewal will play a key role in the three-year turnaround programme launched last spring and in implementing the new strategy currently under development. The goal of the operating model renewal is to strengthen the company’s market area-level profit responsibility and management. We are also pursuing clearer ways of working and a strong customer- and consumer-driven way of operating. According to the plan, the Group-level synergies will be leveraged also in the future,” says HKScan’s CEO Tero Hemmilä.

HKScan is assessing the need to boost its operational efficiency in Finland

HKScan is also planning efficiency measures in Finland. The planned efficiency measures may impact the number of employees and their employment terms. The planned operating model renewal and the efficiency measures are preliminarily estimated to lead to the termination of maximum 25 employment contracts. It is estimated that the changes will mainly target Rauma poultry plant’s white-collars, senior white-collars and management. HKScan is also reviewing the possibility of adjustments in the number of white-collar and blue-collar employees in the Outokumpu and Paimio units through temporary layoffs next year.

The company’s goal is to make the decisions and to implement the possible measures immediately upon conclusion of the statutory negotiations, but by the end of 2019 at the latest.

HKScan Corporation

Tero Hemmilä
CEO

Further information:

Heidi Hirvonen, SVP, Communications, tel. +358 (0)10 570 6072

HKScan Media Service Desk, tel. +358 (0)10 570 5700, or email: communications@hkscan.com

HKScan Corporation is a publicly listed meat and food company with over one hundred years of experience in responsible Nordic food production for customer and consumer needs. HKScan’s sustainable way of operating spans the entire value chain, from farm to consumer. Our nearly 7,200 professionals ensure our promise of high-quality products that taste good. Our home markets cover Finland, Sweden, Denmark and the Baltics. Our diverse product selection includes poultry, pork, beef, and lamb products as well as charcuterie and meals. The company’s strong consumer brands are HK®, Kariniemen®, Via®, Scan®, Pärsons®, Rakvere®, Tallegg® and Rose®. In 2018, HKScan’s net sales were EUR 1.7 billion. 

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