HKScan Oyj - Company Announcement

HK RUOKATALO PLANS COOPERATION TO RATIONALISE THE USE OF SLAUGHTERING AND CUTTING CAPACITY

HKScan Oyj              STOCK EXCHANGE RELEASE 3 July 2007, at 3pm


HK RUOKATALO PLANS COOPERATION TO RATIONALISE THE USE OF SLAUGHTERING AND
CUTTING CAPACITY 

HK Ruokatalo Oy, responsible for the Finnish operations of the HKScan Group,
and Järvi-Suomen Portti Osuuskunta cooperative have today signed a preliminary
agreement concerning possible cooperation to rationalise slaughtering and
cutting operations. In accordance with the preliminary agreement, Järvi-Suomen
Portti will study closing its Lappeenranta slaughterhouse and outsourcing its
pork and beef slaughtering and the cutting of beef to HK Ruokatalo. 

The aim of the arrangement is to improve the efficiency of both HK Ruokatalo's
and Järvi-Suomen Portti's slaughtering and cutting operations. When
implemented, the arrangement would reduce existing slaughtering capacity in
Finland while making better use of remaining capacity. The volume of HK
Ruokatalo's slaughtering and cutting operations would increase as a result of
Portti's outsourcing, as would the capacity utilisation rate. The arrangement
would furthermore serve to support HK Ruokatalo's ongoing efficiency programme
in Finnish operations. 

Any arrangements implemented will have no impact on the parties' competitive
relationship in product development, manufacture and marketing. 

HK Ruokatalo slaughters pork at Forssa and Mellilä. The company's beef
slaughterhouse is located in Outokumpu. In 2006, HK Ruokatalo processed some 95
million kg of pork and beef while the comparable figure for Järvi-Suomen Portti
was ca. 18 million kg. 


HKScan Oyj


Kai Seikku
CEO



Further information:
Managing director Esa Mäki, HK Ruokatalo Oy. Please leave any messages for him
to call with Marjukka Hujanen on +358 (0)10 570 6218. 


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