HKScan Corporation                 Stock exchange release            7 January 2013                        1:45 p.m.

HKScan to launch labour negotiations in Finland

HKScan Group updated its strategy and its management and operating model during 2012. In accordance with the strategy, and to develop the productivity and profitability of the business, the ways of working will be harmonised and the group structure will be made more compact in all the company’s home markets. The goal is to utilise the group synergies more effectively. As part of this, there are plans to reorganise the structures and functions of HKScan's Finnish operations.The planned actions aim to improve profit by approximately EUR 5 million annually, and they are planned to be carried mainly out by the end of 2013.The plans include investments and non-recurring costs, the amount of which will be specified during the negotiation process.

The labour negotiations proposal submitted today covers the Finland-based personnel of the Group's parent company HKScan Corporation and the staff of HK Ruokatalo Oy and its procurement company HK Agri Oy, with certain limitations. The possible impact on personnel is estimated to concern/to be directed at up to 295 blue-collar employees, administrative staff or senior administrative staff. The negotiations aim to keep the amount of terminations of employment to under half of what is estimated through changes in job descriptions or other milder solutions regarding the personnel.

The negotiations will begin on Monday, 14 January 2013. The preliminary estimate of the durations of the negotiation process is from 6 to 8 weeks. The possible impact on personnel will be further specified as the negotiations unfold. HKScan has approximately 2 400 employees in Finland.

HKScan Corporation
Hannu Kottonen

Further information can be obtained from Anne Mere, EVP Consumer Business in Finland and Baltics.
You can ask her to call you back by contacting Marja Siltala, tel. +358 10 570 2290.

HKScan’s business in Finland is carried out by HK Ruokatalo Oy.
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 2011, it had net sales of EUR 2.5 billion and some 11,400 employees. 

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