HKScan will invest EUR4.6 million (US$5.1 million) to add automation equipment to its poultry cutting department at its plant in Rauma, Finland, and as a result, will be reducing the workforce at the facility.
The company decided to make the development investment in an effort to improve profitability and competitiveness, following the recently completed statutory negotiations that began in March.
With the additional automation will come a reorganization of operations, staff adjustments and renewal of working practices. The company will reduce up to 35 jobs at the Rauma plant. In addition, there will be changes to over 200 jobs. The job reductions, including retirements and department transfers, and changes in tasks will be implemented during the first half of 2024, the company stated. A total of 225 people were covered by the statutory negotiations, which concerned blue-collar employees.
With the investment and related operational restructuring, HKScan aims to achieve total annual savings of around EUR3 million in Finland, and those savings are expected to be realized in the second half of 2024 at the latest.
“At HKScan, we determinedly focus on improving the profitability of our core business, which is one of our main priorities this year. The aim of increased automation levels in the Rauma unit is to achieve a clear improvement in profitability. The investment will also improve staff well-being at work and product quality. Over the past few years, the unit has undergone significant development work thanks to good cooperation between the unit's management and all employees. This good collaboration was also reflected in the constructive spirit of the statutory negotiations. With the changes we are now implementing, we are building a stronger foundation for the future competitiveness of our poultry business. The category of poultry products is a growing and strategically important one for the company,” Jari Leija, HKScan’s EVP for the Business Unit Finland, said in a press release.
The development investment in the Rauma poultry unit is a continuation of the productivity and profitability improvement program for the poultry business launched in 2020.
