HKScan to introduce a new Group-wide operating model

HKScan Corporation                  Press release 5 December 2019, at 10.00 (EET)

HKScan will introduce its new Group-wide operating model on 1 January 2020. The new model is an integral part of the company’s turnaround programme and its accountable implementation as well as the new strategy. Furthermore, HKScan has assessed the efficiency of its Finnish operations. As a result of the statutory negotiations, eight employments will be terminated.

HKScan has completed the country-specific preparation processes initiated in October concerning the new Group-wide operating model. The negotiations were conducted in accordance with the local legislation and practices of each country.

In line with its new operating model, HKScan will move from a matrix organization to country-based Business Unit level P&L management where Finland, Sweden, the Baltics and Denmark form the reporting units. The key Group-wide functions will continue to play an essential role in ensuring business synergies and good governance.

In all HKScan’s operating countries, the operating model renewal mainly concerns the changes in reporting lines of white-collar employees. These changes have no material impact on the number of the Group’s employees or employment terms.

“The renewal of the Group-level operating model has a central role in the implementation of the three-year turnaround programme launched last spring and the Group's new strategy published in November. The renewal strengthens and clarifies market-area level profit responsibility and day-to-day management. With the renewal, we also aim to reinforce our customer- and consumer-driven way of operating,” says CEO Tero Hemmilä.

The composition of HKScan Management Team and extended responsibilities as of 1 January 2020:

• CEO Tero Hemmilä,
• EVP, Business Unit Finland Jari Leija,
• EVP, Business Unit Sweden Denis Mattsson,
• EVP, Business Unit Baltics Anne Mere,
• EVP, Business Unit Denmark Jukka Nikkinen,
• CFO Jyrki Paappa,
• EVP, Administration Markku Suvanto,
• EVP, Export, import and meat balance Juha Ruohola, and
• EVP, Strategic business development and investments Mika Koskinen.

HKScan to boost its operational efficiency in Finland

HKScan also negotiated to streamline its operations in Finland. As a result of the statutory negotiations, a total of eight employments will be terminated in the Finnish operations, due to the partial organizational change and efficiency measures. Most of the personnel impacts estimated at the beginning of the negotiations will be addressed through reorganization of tasks. In addition, the number of employees of the beef units in Outokumpu and Paimio will be adjusted to the market situation through temporary layoffs at dates specified in 2020.

HKScan Corporation 

Tero Hemmilä 
CEO

Further information:

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

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

HKScan Corporation is a publicly listed 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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