HKScan’s statutory negotiations have ended; production operations to be rationalised in Finland

HKScan Corporation                Stock Exchange Release               10 October 2018                           8:30 a.m. (EET)

HKScan is improving its profitability and competiveness by rationalising its production operations in Finland. In June (Stock Exchange Release 25 June 2018) the company initiated a review related to the rationalisation and adjustment of its Finnish production operations and location-specific statutory negotiations targeting the company’s production and logistics employees in the Vantaa, Forssa, Mikkeli, Paimio and Outokumpu units. The review and the related cooperation negotiations have been completed at all locations within the scope of the negotiations.

As a result of the cooperation negotiations, the number of employees will decrease by a total of 165. Additionally, all units within the scope of the negotiations will prepare for location-specific layoffs due to seasonal fluctuations. With these measures, company estimates to reach an annual saving of about seven million euros.

“We got plenty of valuable insights and suggestions from the employee teams reviewing the rationalisation needs. We will continue the collaboration in the spirit of continuous improvement,” says Sami Sivuranta, EVP, Operations, HKScan.

As a part of the process HKScan has evaluated possibilities to streamline its operational footprint. “By more efficient utilisation of our production capacity we can both improve the unit-level capacity utilisation rates and enhance product quality,” says Sami Sivuranta.

The now concluded review related to rationalising and adjusting the Finnish production operations is part of HKScan’s Group-wide efficiency improvement programme (Stock Exchange Release 19 July 2018) targeting an annual savings of 40 million euros during 2020 and onwards.

HKScan Corporation 

Jari Latvanen
President and CEO 

For more information, please contact

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

HKScan is a Nordic meat and meals company. We employ over 7 300 professionals in striving to serve the world´s most demanding consumers, maintaining quality throughout the full chain of operations, From Farm to Fork. HKScan produces, markets and sells high-quality, sustainably produced pork, beef, poultry and lamb products, as well as charcuterie and meals, with strong consumer brands, including HK®, Scan®, Rakvere®, Kariniemen®, Rose®, Pärsons® and Tallegg®. Our customers are the retail, food service, industrial and export sectors, and our home market comprises of Finland, Sweden, Denmark and the Baltics. We export to close to 50 countries. In 2017, HKScan had net sales of EUR 1.8 billion, making us one of Europe’s leading meat and meals companies. www.hkscan.com

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