HKScan Oyj - Company Announcement

HKSCAN GROUP'S PRODUCTIVITY PROGRAMME AT HK RUOKATALO READY

HKScan Corporation     Stock exchange release   20 January 2011 at 10:10 am



HKSCAN GROUP'S PRODUCTIVITY PROGRAMME AT HK RUOKATALO READY

The productivity programme of HKScan Finland's subsidiary HK Ruokatalo
concerning the period 2011−2013 announced last autumn is ready and the
employer-employee negotiations relating thereto concerning blue and white
collar employees in HK Ruokatalo's industrial processes, which started in
November, have ended. 

The parties, HK Ruokatalo and its blue and white collar personnel employed in
industrial processes, have signed an agreement whereby the parties commit to a
target programme which, when implemented, will improve the productivity of the
company's industrial processes on average by 20 percent. A production
facility-specific programme to develop cost competitiveness drawn up for the
company's production facilities in Finland constitutes a key part of the
agreement. 

HK Ruokatalo's own industrial activity will be enhanced by returning HK
Ruokatalo's partially outsourced operations relating to its core business (e.g.
pork cutting) in stages to the company during 2011. 

In order to streamline the company's industrial structure, HK Ruokatalo will,
together with representatives of the personnel, seek solutions regarding the
future roles of the production facilities in Säkylä and Mellilä. 

Implementation of the productivity programme will mean a reduction of roughly
230 person-years in HK Ruokatalo's business chain, including subcontractors /
outsourced operations, by the end of 2011. 

The productivity programme aims to reduce overall expenditure by EUR 12 million
annually. Of the annual cost benefits mentioned above, EUR 6 million will be
achieved during 2011. The additional expenditure of EUR 3 million announced
previously is not estimated to arise from the implementation of the programme. 

HKScan Corporation

Matti Perkonoja
CEO



Further information is available from:
− HKScan Finland's Managing Director Jari Leija. Please leave any messages for
him to call with HKScan's Communications Manager Marja Siltala on +358 10 570
2290. 



HKScan is one of the leading food companies in northern Europe with home
markets in Finland, Sweden, Denmark, the Baltic countries and Poland. HKScan
manufactures, sells and markets pork and beef, poultry products, processed
meats and convenience foods under several well-known local brand names. Its
customers are retail, the HoReCa sector, industry and export customers. HKScan
is active in nine countries and has some 11,000 employees. It had net sales of
EUR 2.1 billion in 2009. 


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