HKScan Oyj - Company Announcement

HKScan acquires 50 per cent stake in Paimion Teurastamo slaughterhouse

HKScan Corporation                                                        
Stock Exchange Release 2 July 2015, at 3 pm 


HKScan acquires 50 per cent stake in Paimion Teurastamo slaughterhouse

HKScan Finland has acquired a 50 per cent stake in Paimion Teurastamo as part
of its strategy to boost profitable growth. The slaughterhouse is owned by the
Turku-based Kaivon Liha Kaunismaa Oy, which will retain a 50 per cent holding
in the company. Paimion Teurastamo will become to HKScan's portfolio of
associated companies. 

Specializing in beef slaughtering, Paimion Teurastamo operates in a
Paimio-based facility commissioned in 2012. The company is profitable, accruing
EUR 13.8 million in net sales in 2014. Last year it slaughtered over 20 000
head of cattle, with volumes rising in the first half of 2015. The company has
roughly 40 employees. 

Mika Kaunismaa will stay on as the Managing Director and the entire animal
sourcing team will also retain their current positions. 

HKScan has extensive experience working with Paimion Teurastamo in livestock
contract slaughtering. HKScan has also supplied fresh meat to Kaivon Liha
Kaunismaa Oy. 

HKScan's CEO Hannu Kottonen stated that the deal supports the Group's strategic
beef project aiming to promote innovation and consumer-driven offering
development of beef in all its home markets. Consumers and customers are
showing increased interest in for example local beef and organic products. 

HKScan additionally has a beef slaughtering facility based in Outokumpu. CEO
Hannu Kottonen affirms that HKScan intends to strengthen its beef sourcing
capacity on a long-term basis. With two specialized beef slaughterhouses,
livestock transport distances are minimized, offering contract producers
greater speed and flexibility in pick-up schedules. 

Mika and Juha Kaunismaa, co-owners of Kaivon Liha Kaunismaa Oy, stated that the
deal will support and strengthen their existing smooth cooperation with HKScan
in the sourcing and the meat raw material sourcing and offering development.
Founded in Turku in 1968, Kaivon Liha Kaunismaa Oy is a family-run business
specializing in beef processing and wholesale. Over the past 40 years it has
grown from a small local business into important national meat company. The
Group owns Paimion Teurastamo, which is one of its beef suppliers. 

HKScan Corporation
Hannu Kottonen
President and CEO

For further details:

  -- Hannu Kottonen
, CEO, HKScan Group
  -- Please submit your callback request to Marja Siltala, VP Communications
     Finland, marja.siltala(at)hkscan.com, tel +35810 570 2290.

HKScan is the leading Nordic meat expert. We produce, market and sell
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. In 2014, HKScan had net sales of approximately EUR 2.0 billion
and some 7 700 employees. 

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