In an effort to improve its profitability and competitiveness, HKScan is rationalizing its production operations in Finland and cutting 165 positions.

In June, the European meat and poultry company initiated a review related to the rationalization and adjustment of its Finnish production operations and location-specific statutory negotiations targeting the company’s production and logistics employees in the Vantaa, Forssa, Mikkeli, Paimio and Outokumpu units. The review and the related cooperation negotiations have been completed at all locations within the scope of the negotiations.

As a result of the cooperation negotiations, the number of employees will decrease by a total of 165. Additionally, all units within the scope of the negotiations will prepare for location-specific layoffs due to seasonal fluctuations. With these measures, company estimates to reach an annual saving of about EUR7 million (US$8.05 million)

“We got plenty of valuable insights and suggestions from the employee teams reviewing the rationalization needs. We will continue the collaboration in the spirit of continuous improvement,” said Sami Sivuranta, executive vice president of operations, HKScan.

As a part of the process, HKScan has evaluated possibilities to streamline its operational footprint. “By more efficient utilization of our production capacity we can both improve the unit-level capacity utilization rates and enhance product quality,” said Sivuranta.

The now concluded review related to rationalizing and adjusting the Finnish production operations is part of HKScan’s group-wide efficiency improvement program, targeting an annual savings of EUR40 million (US$46 million) during 2020 and onwards.