HKScan has purchased the plot of land on which its factory and logistics center are located in Vantaa, Finland, per a decision of the company’s board of directors.
HKScan bought the plot of land from LSO Osuuskunta using the right of first refusal included in the land lease agreement. The purchase price was approximately EUR36 million (US$39.3 million). HKScan has negotiated a funding arrangement with its financing banks to enable the purchase of the land.
Based on the related party relationship between HKScan and LSO Osuuskunta, the land transaction is defined as a related party transaction. The purchase price paid by HKScan corresponds to the offer LSO Osuuskunta received for the plot of land from a third party.
In Finland, HKScan concentrated its capital region production in Vantaa in 1991. The factory was expanded in 2007, and in 2008, a logistics center built on the site became operational and began serving HKScan’s customers across Finland. Some 50 million kilos of meals and processed meat products are produced in Vantaa annually and over 700 food industry professionals work there. Nearly 120 million kilos of products are delivered annually to customers through the logistics center. The property owned by HKScan is also a workplace for external operators serving the food sector.
“For us, it is important to secure our operations in the current location in Vantaa for a long time to come. The techno-economic life of the Vantaa production unit and logistics center will continue until the 2030s. In addition, the location in the capital region is important, close to customers and to a large part of Finnish consumers. The land in Vantaa is centrally located also in terms of the future development of the area for other purposes. The aim is to expand the ownership base of the land so that it can be developed further to meet the future needs. We intend to continue operating in the capital region also in the future. We have hundreds of food industry professionals in Vantaa making sure every day that consumers have Finnish, responsibly produced food,” said HKScan CEO Tero Hemmilä.
The land transaction between HKScan and LSO Osuuskunta will become final once the statutory three-month period for the right of first refusal of the City of Vantaa has expired.