HKScan Oyj - Company Announcement

HKScan to increase efficiency in Sweden

HKScan Corporation               Stock exchange release 10 August 2012 7:50am


HKScan to increase efficiency in Sweden

As part of the extensive development programme launched in the spring extending
until the end of 2013, HKScan will further enhance the Group's business in
Sweden. The plan now published aims to achieve an annual performance
improvement of approximately EUR 10 million. The changes are planned to be
implemented by the middle of 2013. 

The structure of the business in Sweden will be clarified and streamlined in
line with the Group's new operating model. The plan is that the wholly-owned
subsidiaries belonging to the subgroup in Sweden will be merged into a single
business entity to be known as HKScan Sweden. 

Scan and Pärsons, which have previously operated as business units, will
continue as brands in HKScan's business in Sweden. The aim is to continue to
further develop the brands and the product offering, as well as raising the
added-value of the products. The Scan brand is a market leader in the industry
and one of the best-known consumer brands in Sweden. Pärsons brand is an
industry leader in cold cuts. 

In addition, HKScan will streamline the structure of production and revamp the
organisation. When the plan is implemented HKScan's commercial, production and
logistics organisations and other operations supporting the business in Sweden
will be merged. 

Regarding the actions previously announced, the aim is to employ the plan in
order to transfer the production of semi-finished products from Strövelstorp to
the production facilities located in Halmstad and Kristianstad, Sweden. The
plan, when implemented, will mean the discontinuation of production operations
at the Strövelstorp plant. 

Negotiations concerning the plan with the employee representatives have been
started in Sweden by initiating employer-employee negotiations. The
implementation of the plan will mean a workforce reduction of approximately 100
white-collar employees and 50 blue-collar employees. HKScan has in average 2
800 employees in Sweden. 

Implementation of the changes will entail investments of approximately EUR 1
million during 2013 and write-downs of some EUR 0.5 million. In addition, a
number of other non-recurring costs will be incurred. The amount of these will
become clear later on. 

Strategic review and implementation of the development programme in Sweden will
continue. 


CHANGES IN HKSCAN'S ORGANISATION IN SWEDEN

Denis Mattsson, executive vice president of Sweden and Denmark and a member of
HKScan's Management Team, will retire at the end of 2012. Recruitment of his
successor has been started. During the latter part of the year Denis Mattsson
will focus on strategic projects in the business in Sweden and on managing the
repairs following the fire at the Vinderup plant in Denmark and on restarting
operations there. 

Magnus Lindholm has been appointed as director of operative activities in
Sweden as of 1 September 2012. Mr Lindholm's main responsibility will be
implementation of the development programme in Sweden. He is transferring to
the position from within the company. 


HKScan Corporation

Hannu Kottonen
CEO


Further information can be obtained from
- Hannu Kottonen, CEO. Please leave any messages for him with Marjukka Hujanen
on +358 10 570 6218. 
- Denis Mattson, executive vice president, Sweden and Denmark, tel: +358 400
432 877 or +46 76 128 36 98. 


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 strong brand names. Its customers are retail,
the Food Service, industry and export sectors. It had net sales of EUR 2.5
billion in 2011 and some 11 400 employees. 


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www.hkscan.com