HKScan Corporation               Stock exchange release 10 August 2012 7:50am


HKScan to increase efficiency in Sweden

As part of the extensive development programme launched in the spring extending until the end of 2013, HKScan will further enhance the Group's business in Sweden. The plan now published aims to achieve an annual performance improvement of approximately EUR 10 million. The changes are planned to be implemented by the middle of 2013.

The structure of the business in Sweden will be clarified and streamlined in line with the Group's new operating model. The plan is that the wholly-owned subsidiaries belonging to the subgroup in Sweden will be merged into a single business entity to be known as HKScan Sweden.

Scan and Pärsons, which have previously operated as business units, will continue as brands in HKScan’s business in Sweden. The aim is to continue to further develop the brands and the product offering, as well as raising the added-value of the products. The Scan brand is a market leader in the industry and one of the best-known consumer brands in Sweden. Pärsons brand is an industry leader in cold cuts.

In addition, HKScan will streamline the structure of production and revamp the organisation. When the plan is implemented HKScan’s commercial, production and logistics organisations and other operations supporting the business in Sweden will be merged.

Regarding the actions previously announced, the aim is to employ the plan in order to transfer the production of semi-finished products from Strövelstorp to the production facilities located in Halmstad and Kristianstad, Sweden. The plan, when implemented, will mean the discontinuation of production operations at the Strövelstorp plant.

Negotiations concerning the plan with the employee representatives have been started in Sweden by initiating employer-employee negotiations. The implementation of the plan will mean a workforce reduction of approximately 100 white-collar employees and 50 blue-collar employees. HKScan has in average 2 800 employees in Sweden.

Implementation of the changes will entail investments of approximately EUR 1 million during 2013 and write-downs of some EUR 0.5 million. In addition, a number of other non-recurring costs will be incurred. The amount of these will become clear later on.

Strategic review and implementation of the development programme in Sweden will continue.


CHANGES IN HKSCAN’S ORGANISATION IN SWEDEN

Denis Mattsson, executive vice president of Sweden and Denmark and a member of HKScan’s Management Team, will retire at the end of 2012. Recruitment of his successor has been started. During the latter part of the year Denis Mattsson will focus on strategic projects in the business in Sweden and on managing the repairs following the fire at the Vinderup plant in Denmark and on restarting operations there.

Magnus Lindholm has been appointed as director of operative activities in Sweden as of 1 September 2012. Mr Lindholm’s main responsibility will be implementation of the development programme in Sweden. He is transferring to the position from within the company.


HKScan Corporation

Hannu Kottonen
CEO


Further information can be obtained from
- Hannu Kottonen, CEO. Please leave any messages for him with Marjukka Hujanen on +358 10 570 6218.
- Denis Mattson, executive vice president, Sweden and Denmark, tel: +358 400 432 877 or +46 76 128 36 98.


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 retail, the Food Service, industry and export sectors. It had net sales of EUR 2.5 billion in 2011 and some 11 400 employees.



DISTRIBUTION:
Nasdaq OMX, Helsinki
Main media
www.hkscan.com