April 5, 2021
HKScan makes US$7 million investment in Rauma, Finland poultry unit
HKScan has invested some €6 million (US$7 million) in a new slaughter process at its Rauma, Finland poultry unit, the company announced last month.
The investment enables the unit to significantly improve its raw material yield, productivity and operational reliability. With the investment, the company responds to the strong growth in demand for its responsibly produced Kariniemen poultry products, HKScan said.
The first part of the production process at the Rauma poultry unit has been renewed. The processing capacity of the unit's slaughter line will increase by about 20% and raw material yield by some 10%. In addition, the investment will significantly reduce the consumption of utilities, such as water and district heating. This is one step towards HKScan's target of carbon-neutral food production in line with the company's Zero Carbon climate plan.
"The new slaughter line was installed in stages during the early part of the year. The biggest changes were completed in recent weeks. Installation work proceeded as planned despite the additional challenges posed by the COVID-19 pandemic," said Jari Leija, HKScan's executive vice president of business unit (Finland).
"Thanks to careful planning and our top professionals throughout the chain, the unit's service level remained good during the installation work. After the equipment installations, we will continue to develop the unit's productivity and striking power."
"Poultry products play a key role in driving growth in line with HKScan's strategy. HKScan is the second largest poultry company in its Baltic Sea region home markets," said HKScan CEO Tero Hemmilä. "In 2020, our poultry product sales increased by over 12% and as a poultry product producer, we are the market leader in Finland, Estonia and Denmark. In Finland, we anticipate the demand for Kariniemen poultry products to continue strong also in the future."
HKScan's Rauma unit delivers almost half of the poultry products in Finland. The unit's service level and efficiency developed almost as planned in 2020, which improved the result of HKScan's poultry business in the country. The target level has not yet been achieved.
The investment now implemented enables the further development of the unit's productivity and efficiency.