HKScan Corporation        Stock exchange release   8 October 2012              at 8:00 a.m.


HKScan continues efficiency measures in Sweden and Denmark


As part of the extensive group development programme, launched in the spring and to be carried out until the end of 2013, HKScan will continue to improve operating efficiency in Sweden and Denmark.

As communicated previously, the
slicing of cold cuts and the manufacturing of cold-smoked products in Sweden will be centralised in Halmstad, and the manufacturing of other cold cuts in Kristianstad. Related to this, the cold cut production unit in Bjaeverskov, Denmark, has also been shut down at the end of September.  If implemented, the aforementioned measures will cause the employment termination of about 70 people.

Due to the pork meat production decline in Sweden, it is additionally intended that the nightshift of pork cutting in Kristianstad will be discontinued, which means that cutting operations will work in one shift. Employer-employee negotiations concerning the employment termination of 55 people have been commenced on 8 October 2012.

The efficiency plan for HKScan's market area Sweden, announced in early August 2012, and now further specified, annually aims to improve the result by about EUR 10 million, and the plan is to implement the changes by the middle of 2013.

If implemented, the plan means that in addition to the employment termination of about 150 people, announced previously, the number of staff will be reduced by about 70 people more. HKScan currently has about 2 500 employees in Sweden.




HKScan Corporation
Hannu Kottonen

CEO


For more information, please contact:
– CEO Hannu Kottonen, HKScan  Corporation. You can ask him to call you back by contacting Marjukka Hujanen, tel. +358 10 570 6218.
– Denis Mattsson, Executive Vice President, Sweden and Denmark, tel. +358 400 432 877 or +46 76 128 36 98.




About HKScan Sweden

HKScan is the meat industry's market leader in Sweden. Its products include cold cuts, sausages, bacon and consumer packaged meat. The main brands are Scan and Pärsons. Scan is one of the most well-known consumer brands in Sweden and part of the national food identity. Pärsons is the industry's leading brand in cold cuts in particular.



HKScan Corporation

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. It had net sales of EUR 2.5 billion in 2011 and some 11 400 employees.




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