HKScan concludes statutory labour negotiations in Finland

HKScan Corporation                                                 Stock exchange release          6 March 2013 at 10:00 a.m.

HKScan concludes statutory labour negotiations in Finland

The statutory labour negotiations started in HKScan Group's Finnish functions in January have been concluded. The outcome is that the organisations and responsibility distribution of different functions have been clarified to match the Group's new operating model. Additionally, the roles of HKScan's Finnish production units have been defined and the number of staff has been adjusted to meet the variation in the demand.

The staff impact caused by the structural and functional reorganisation of HKScan Corporation, HK Ruokatalo Oy and HK Agri Oy concerns 268 employees in total. According to the original plans, more than 50% of the staff impact can be implemented through changes in job descriptions and responsibilities. The changes concern 145 people in total. The company will cut 123 jobs, of which 49 will be implemented through permanent layoffs. Other reductions can be carried out by retirement or fixed-time arrangements.

The measures will mainly be taken by the end of 2013 and the goal is to improve the annual profit by five million euros. According to the strategy, updated in 2012, HKScan will harmonise ways of working and introduce a more compact Group structure in all its home markets. The negotiations launched on 14 January concerned the staff of the Group's parent company, HKScan Corporation, and the staff (with specific limitations) of HK Ruokatalo Oy and its procurement company HK Agri Oy. HKScan has about 2 400 employees in Finland.

HKScan Corporation

Hannu Kottonen
CEO

For more information, please contact Anne Mere, director responsible for HKScan's Finnish and Baltic consumer business. You may submit a call request to her via Marja Siltala, tel. +358 10 570 2290.

HK Ruokatalo Oy is responsible for the Finnish business of HKScan Group.
HKScan is one of the leading food companies in northern Europe, with home markets in Finland, Sweden, Denmark, the Baltic countries and Poland. HKScan manufactures, sells and markets pork and beef, poultry products, processed meats and convenience foods under strong brand names. Its customers are the retail, food service, industrial and export sectors. In 2012, it had net sales of EUR 2.5 billion and some 11 000 employees.

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