August 22, 2022

HKScan plans development investment at Forssa, Finland unit to improve competitiveness

HKScan plans to invest more than €5 million (US$5 million) in the meat packing and shipping departments of its unit in Forssa, Finland, to improve cost efficiency and competitiveness.

The planned investment will also include reorganisation of operations, staff adjustments and renewal of operating methods.  

With the planned investment in Forssa and the related operating model renewal, HKScan aims to achieve total annual savings of more than €2 million (US$2 million) in Finland. The planned investment and reorganisation of operations are expected to generate savings after completion of the investment in 2024 at the latest.

HKScan will initiate statutory change negotiations related to the plan in the end part departments of the production process at the Forssa unit, which is part of the company's meat business.

The change negotiations concern blue-collar workers at these departments. The negotiations concern a total of 116 persons.

At the Forssa unit, the planned measures may affect a maximum of 116 employment relationships, either through termination of employment or through substantial changes in the terms of employment. The changes now planned do not concern HKScan's other production units in Finland.

"The operations of the Forssa unit have been significantly developed in recent years through good cooperation between the management and entire staff," said Jari Leija, HKScan's executive vice president of business unit (Finland). "This has created a strong basis for the continuity of Forssa's operations, which will be further strengthened by the planned investment. In order to strengthen our competitiveness, we need to determinedly continue to improve the cost-efficiency of our operations and look for new ways to meet the needs of customers and consumers.

"Improving cost efficiency is particularly important now when cost inflation has driven up costs sharply. We are now planning the next step of development in Forssa by increasing the level of automation. The planned measures also aim to achieve a clear improvement in profitability and strengthen the basis for business continuity."

- HKScan