HKScan Oyj - Company Announcement

HKScan plans to restructure production set-up in Denmark

HKScan Corporation          Stock Exchange Release Jan 5, 2015 12.00 (EET),
11.00 (CET) 



HKScan plans to restructure production set-up in Denmark

HKScan Group, a leading Nordic meat company, continues to streamline its
operational footprint. The Group aims to improve operational efficiency by
restructuring its production capacity in Denmark, where the Group has
production facilities in Vinderup and Skovsgaard. The planned actions will
create an efficient production platform supporting the Group's strategic goal
of boosting profitable growth. 

The restructuring will centralize poultry slaughtering and cutting at the
modern Vinderup facility. The investments and rebuild completed at Vinderup
over the past two years have increased HKScan's slaughtering and deboning
capacity, resulting in excess capacity. Packaging and warehousing will remain
based in Skovsgaard. Scheduled for completion by the end of March 2015, the
restructuring will result in a net headcount reduction of approximately 85-95
employees in total, involving reorganization both in Skovsgaard and Vinderup.
The plan is a subject to statutory negotiations, which will begin on 6. January
2015. 

The targeted annualized cost reduction and profit improvement is in excess of
EUR 5 million, including efficiency measures related to the production
restructuring.  The impact is targeted to materialize from the second quarter
2015 onwards. The restructuring causes a non-recurring cost of EUR 1,6 million,
which will be reported in the fourth quarter of 2014. "We need to adjust our production capacity in line with market demand. At the
same time, cost reductions are required. We want to get our Danish operation
back in balance after the rebuild following the fire of June 2012 and start
investing in growth opportunities. We are confident that by realizing the plan,
we can improve capacity utilization and create a competitive cost base and new
opportunities for profitable growth. HKScan is committed to developing and
investing in Danish business and production,” says Anders Jeppesen Jensen,
General Manager of HKScan Denmark A/S. 

HKScan is the largest poultry company in Denmark with net sales totaling EUR
225 million in 2013 and approximately 750 employees. The company sells, markets
and produces poultry-based products mainly under the well-known Rose brand,
which is also exported widely. 



HKScan Group

Hannu Kottonen
President and CEO



For further information:
To contact Hannu Kottonen, CEO, HKScan, kindly submit a callback request to
Marja-Leena Dahlskog, SVP Communications, HKScan, tel. +358 50 502 0060. 


HKScan is the leading Nordic meat expert. We sell, market and produce
high-quality, responsibly-produced pork, beef, poultry and lamb products,
processed meats and convenience foods under strong brand names. Our customers
are the retail, food service, industrial and export sectors, and our home
markets comprise Finland, Sweden, Denmark and the Baltics. We export to close
to 50 countries. HKScan's net sales is EUR 2.1 billion and we have some 7 700
employees, making us one of the Europe's leading meat companies.