December 9, 2019


HKScan to introduce new group-wide operating model


HKScan will introduce its new group-wide operating model on January 1.


The new model is an integral part of the company's turnaround programme and its accountable implementation as well as the new strategy. HKScan has also assessed the efficiency of its Finnish operations.

As a result of the statutory negotiations, eight positions will be terminated.

HKScan has completed its country-specific preparation processes initiated in October concerning the new group-wide operating model. The negotiations were conducted in accordance with the local legislation and practices of each country.

In line with its new operating model, HKScan will move from a matrix organisation to a country-based business unit level profit and loss management. Key group-wide functions will continue to play an essential role in ensuring business synergies and good governance.

In all HKScan's operating countries, the operating model renewal mainly concerns the changes in reporting lines of white-collar employees. These changes have no material impact on the number of the group's employees or employment terms, the company said.

"The renewal of the group-level operating model has a central role in the implementation of the three-year turnaround programme launched last spring and the group's new strategy published in November. The renewal strengthens and clarifies market-area level profit responsibility and day-to-day management. With the renewal, we also aim to reinforce our customer- and consumer-driven way of operating," said HKScan CEO Tero Hemmilä.

The composition of HKScan Management Team and extended responsibilities as of January 1, 2020 is: Tero Hemmilä (CEO), Jari Leija (EVP, Finland business unit); Denis Mattsson (EVP, Sweden business unit); EVP, Anne Mere (EVP, Blatics business unit); Jukka Nikkinen (EVP, Denmark Business Unit Denmark); Jyrki Paappa, CFO; Markku Suvanto (EVP, administration); Juha Ruohola (EVP, export, import and meat balance); and Mika Koskinen (EVP, strategic business development and investments).

HKScan also negotiated to streamline its operations in Finland. Most of the personnel impacts estimated at the start of the negotiations will be addressed through reorganisation of tasks.

In addition, the number of employees at the beef units in Outokumpu and Paimio will be adjusted to the market situation through temporary layoffs.

- HKScan