HKScan aims to improve the competitiveness and cost efficiency of its poultry business in Finland. The company plans to increase production efficiency, reorganise operations and renew working methods in the poultry units of Rauma and Eura to meet the market and competitive situation and to continue to secure its strong position in the strategically important and growing category of poultry products.
With the planned measures, HKScan aims to achieve annual savings of more than EUR 3 million. The savings are expected to be realised over 2023.
Related to the plan, HKScan will start statutory negotiations at the Rauma and Eura units of its poultry business. The negotiations concern blue-collar employees as well as the white-collar employees in the maintenance organisation. The negotiations concern a total of approximately 600 persons. The planned measures may affect up to 210 employment contracts in the Rauma unit, either through termination of employment or through substantial changes in the terms of employment. Any job reductions or substantial changes in the terms of employment contracts will not affect the Eura unit with regard to the poultry business. The changes now planned do not concern HKScan’s other production units in Finland.
The planned production efficiency improvements, reorganisation and renewal of operating methods are a continuation of the poultry business productivity and profitability improvement programme started in 2020. Within this programme, investments have been made, for example, in the Rauma unit's process productivity in 2020-2021.
“We have done a lot of development work in our Rauma unit over the past few years. Nevertheless, we are clearly behind our target in terms of cost efficiency and profitability. In order to strengthen our market and competitive position, we need to continue to focus on improving the cost efficiency of our operations and find new ways to meet customer expectations and consumer needs also in the future. We have planned to continue our development work by reorganising our working methods and operations. Improving cost efficiency is particularly important now, when cost inflation has driven up costs sharply. With the planned changes, we are building a stronger base for the future profitability of our poultry business,” says Jari Leija, HKScan’s EVP for the Business Unit Finland.
More information:
- HKScan Media Service Desk, email: communications@hkscan.com
At HKScan, we make life tastier – today and tomorrow. Our strategic target is to grow into a versatile food company Our responsibly produced, delicious products are part of consumers’ varied food moments – both every day and on special occasions. We have some 7,000 HKScan professionals applying more than 100 years of experience to make locally produced food. For us at HKScan, responsibility means continuous improvements and concrete actions throughout the food chain. As part of our Zero Carbon project, we are targeting a carbon-neutral food chain from farms to consumers by the end of 2040. Our home markets cover Finland, Sweden, the Baltics and Denmark. Our strong product brands include HK®, Kariniemen®, Via®, Scan®, Pärsons®, Rakvere®, Tallegg® and Rose®. Through our strategic partnerships, we are also known for Kivikylän®, Tamminen® and Boltsi brands. In 2021, net sales of the publicly listed HKScan totalled EUR 1.8 billion. www.hkscan.com