March 13, 2023


HKScan plans development investment in Rauma, Finland poultry unit




HKScan is planning a development investment of approximately €‎4.6 million (US$4.9 million) in its Rauma, Finland poultry unit's cutting department to improve profitability and competitiveness.


The planned investment will also involve reorganising operations, adjusting staff levels and renewing working practices.


With the planned investment in Rauma and the related operational restructuring, HKScan aims to achieve total annual savings of around €‎3 million (US$3.2 million) in Finland. The planned investment and reorganisation of operations are expected to generate savings after completion of the investment in the second half of 2024 at the latest.


HKScan will launch statutory negotiations related to the plan in the Rauma unit's poultry cutting department. The negotiations will concern blue-collar employees and affect 225 people in total.


The planned measures, if implemented, may lead to staff reductions and/or material changes in the terms of employment of staff in the Rauma unit, which would mean an estimated maximum of 45 contract terminations and/or an estimated maximum of 214 substantial changes to the terms of employment contracts. The changes now planned do not concern HKScan's other production units in Finland.


"We have made significant development work and investments in production equipment in Rauma during the past few years," said Jari Leija, HKScan's executive vice president for Business Unit Finland. "At HKScan, we determinedly focus on improving the profitability of our core business, which is one of our main priorities this year. To strengthen our market and competitive position in the strategically important and growing category of chicken products, we are also looking for new ways to meet customer expectations and future consumer needs.


"This planned investment in increasing the level of automation and related development activities will have an impact not only on cost efficiency, but also on product quality and the wellbeing of our employees. With the changes planned, we are building a stronger foundation for the future competitiveness of our poultry business and the profitability of the company."


The development investment planned in the Rauma poultry unit is a continuation of the productivity and profitability improvement programme for the poultry business launched in 2020.


As part of this programme, investments have been made, for example, in the Rauma unit's process productivity in 2020-2022.


- HKScan

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