May 10, 2022
HKScan to improve competitiveness and cost efficiency of poultry business in Finland
HKScan aims to improve the competitiveness and cost efficiency of its poultry business in Finland, the company recently announced.
It plans to increase production efficiency, reorganise operations and renew working methods of the poultry units in Rauma and Eura and to continue to secure its strong position in the strategically important and growing category of poultry products.
With the planned measures, HKScan seeks to achieve annual savings of more than €3 million (US$3.2 million). The savings are expected to be realised by 2023.
HKScan willalso start statutory negotiations at the Rauma and Eura units. The negotiations concern blue-collar employees as well as the white-collar staff in the maintenance organisation.
The planned measures may affect up to 210 employment contracts in the Rauma unit, either through termination of employment or through substantial changes in the terms of employment.
Any job reductions or substantial changes in the terms of employment contracts will not affect the Eura unit in regard to the poultry business. The changes now planned do not concern HKScan's other production units in Finland.
Production efficiency improvements, reorganisation and renewal of operating methods are a continuation of HKScan's poultry business productivity and profitability improvement programme which was started in 2020. Within this programme, investments have been made, for example, in the Rauma unit's process productivity during the 2020-2021 period.
"We have done a lot of development work in our Rauma unit over the past few years. Nevertheless, we are clearly behind our target in terms of cost efficiency and profitability," said Jari Leija, HKScan's executive vice president for the Business Unit Finland. "In order to strengthen our market and competitive position, we need to continue to focus on improving the cost efficiency of our operations and find new ways to meet customer expectations and consumer needs in the future.
"We have planned to continue our development work by reorganising our working methods and operations. Improving cost efficiency is particularly important now when cost inflation has driven up costs sharply. With the planned changes, we are building a stronger base for the future profitability of our poultry business."