HKScan Finland Oy and Järvi-Suomen Portti cooperative have on this date agreed to enter into a corporate arrangement to establish a new corporate entity, with Järvi-Suomen Portti as a minority shareholder, to carry on the production of processed meats at Portti’s current plant located in Tikkala in the town of Mikkeli. The plant is to be made available to the new company through a long-term lease.

The planned transaction includes the production machinery at the Tikkala plant as well as Järvi-Suomen Portti’s brands. The new company will continue to sell and market Portti products.

Personnel affected by the arrangement will transfer to the new company as ‘old employees’, i.e. with the terms of their employment unchanged.

The arrangement is being put into place to ensure continued production activities in Mikkeli as well as the availability of established and popular products to Finnish consumers. Upon implementation of the arrangement, HKScan Finland intends to have the new company produce, on a contract manufacture basis, HK-brand products suited to the capacity and technology of the Mikkeli plant. When combined with the plant’s own basic production, this will generate significant economies of scale for the new company.

The arrangement is subject to the approval of the Finnish Competition Authority. Production activities in Mikkeli will continue while the matter is under its consideration.

The arrangement will have no effect on Järvi-Suomen Portti’s pie and convenience food business in Kouvola.

 

Further information is available from HKScan Finland managing director Jari Leija. Please leave any messages for him to call with Marja Säkö on +358 (0)10 570 2602.

 

HKScan Finland Oy is the Finnish business arm of HKScan. HKScan Finland’s subsidiary HK Ruokatalo Oy engages in the production and marketing of meat, processed meats and convenience foods. The brand names of HK Ruokatalo in Finland are HK and Kariniemen.

In 2009, net sales in Finland were EUR 732.5 million and employees in Finland numbered roughly 2 100. For more information about HKScan, please see www.hkscan.com