HKScan Oyj - Company Announcement

RESTRUCTURING PROGRAMME AT HK RUOKATALO NEARING COMPLETION

HKScan 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 



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