March 11, 2023

Finnish poultry firm HKScan cuts jobs, aims to invest in automation

Finland-based food group HKScan aims to invest in automation at its domestic poultry plant, cutting 45 jobs as it aims to improve profitability, Just Food reported.

According to the company, the change at its Rauma plant will also result in substantial changes to the terms of employment contracts for up to 214 additional workers.

HKScan, which announced urgent measures were needed to improve the profitability of the core business and to strengthen the balance sheet in September along with the departure of its CEO, said it is investing about EUR 4.6 million (~US$4.9 million; EUR 1 = US$1.07) in the Rauma facility.

As part of the planned investment, operations will be reorganised, staffing levels will be changed, and new working procedures will be implemented, the company said.

The investment will be used to boost automation at the site, which, according to HKScan, will result in total annual savings of about EUR 3 million (~US$3.19 million) in Finland once the changes are put into place, which should happen no later than the second half of 2024.

The company said that its other production facilities in Finland are unaffected by the proposed changes.

Jari Leija, executive vice-president of HKScan's Finland business unit, said the planned investment in raising the level of automation and related development activities will have an impact not only on cost efficiency but also on product quality and the well-being of their employees.

-      Just Food