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2007-10-09 13:00:00 CEST 2007-10-09 13:00:00 CEST REGULATED INFORMATION HKScan Oyj - Company AnnouncementRESTRUCTURING PROGRAMME AT HK RUOKATALO NEARING COMPLETIONHKScan Corporation STOCK EXCHANGE RELEASE 9 October 2007, at 2pm RESTRUCTURING PROGRAMME AT HK RUOKATALO NEARING COMPLETION In January 2006, HKScan launched a restructuring programme at HK Ruokatalo Oy, the company responsible for the Group's Finnish operations. The programme comprises the closure of the production facilities in Turku and Tampere as well as the distribution terminal in Tampere, the construction of a logistics centre and expansion of production facilities in Vantaa, and investments in processing at the production facilities in Forssa. The majority of the measures will be completed by the end of the current year. The programme has progressed on schedule. A higher than anticipated rise in construction costs will increase the total value of the investment by roughly 10 percent. At present, the budget comes in at EUR 50 million. Impacts on revenue According to current estimates, the non-recurring charges arising from the restructuring to be booked in 2006-2008 will not exceed EUR 8.9 million. A gain on disposal of EUR 3.6 million on the Turku production facility was recognised in the 2006 financial statements. As per 30 June 2007, EUR 3.0 million of the total non-recurring charges arising from the restructuring programme (EUR 8.9 million) had been incurred. The remaining non-recurring charges of EUR 5.9 million will be incurred and recognised in the third and fourth quarters of 2007 and the first quarter of 2008. As the restructuring programme nears completion, the focus in these charges will shift from personnel expenditure to costs arising from logistics and the transfer of production. The Group expects to attain the key objectives of the restructuring programme as reported earlier. The programme will affect some 500 jobs and deliver annual cost savings of EUR 15-20 million when compared to figures for 2005. The full impact of these savings will be in evidence starting in Q2/2008. HKScan Corporation Kai Seikku CEO Further information: CFO Matti Perkonoja. Please leave any messages for him to call with Marjukka Hujanen on +358 (0)10 570 6218 DISTRIBUTION: OMX Nordic Excghange Main media www.hkscan.com |
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