HKScan will move poultry packaging operations in Eura to Rauma and Forssa, Finland. The move, scheduled for completion by the third quarter of 2024, will save the company EUR1 million.
“Our focus remains on production efficiency improvements and tight cost control. In addition, we are optimizing our product portfolio in the face of changing consumer demand and investing in commercial efforts. This way, we are building a stronger basis for the future competitiveness of our business. The actions we are taking now are part of this process. The statutory negotiations in the Eura unit were conducted in a constructive spirit and resulted in a joint agreement," said Jari Leija, HKScan’s EVP for the Business Unit Finland.
The consolidation impacts 19 employees, who will be offered other jobs within the company.
HKScan built the poultry plant in Rauma, Finland, back in 2017 with the intentions to replace the Eura facility.
Other consolidation news
The consolidation news follows a recent trend where HKScan is scaling back in the geographic regions where it operates. The company is in talks regarding the divestiture of business operations in Denmark.
“The company emphasizes that there is no certainty regarding the outcome of these discussions or as to the terms on which any potential transaction might proceed,” HKScan said in a statement on March 12.
“The negotiations are linked to HKScan’s continued assessment of its group structure and the strengthening of the balance sheet, in line with previously communicated objectives. The company reviews the positioning of its market areas as part of the group’s long-term strategy with a target to grow into a versatile food company.”
With annual slaughterings of around 95 million birds, HKScan is among the top 40 poultry meat companies in Europe, according to the WATTPoultry.com Top Poultry Companies survey.
