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2009-09-15 07:00:00 CEST 2009-09-15 07:00:05 CEST REGULATED INFORMATION HKScan Oyj - Company AnnouncementHKSCAN ANNOUNCES ROAD MAP SEEKING DEVELOPMENT BENEFITS OF EUR 30 MILLION IN SWEDENHKScan Corporation STOCK EXCHANGE RELEASE 15 September 2009 at 8am HKSCAN ANNOUNCES ROAD MAP SEEKING DEVELOPMENT BENEFITS OF EUR 30 MILLION IN SWEDEN Major structural streamlining envisioned to deliver development benefits of EUR 30 million is planned for HKScan's Swedish subsidiary Scan AB by the end of 2010. An investment of EUR 12 million is to be made over the same time in the Swedish business. The measures would give rise to non-recurring charges of roughly EUR 5 million. The plan is designed to achieve HKScan's EBIT target of five percent of net sales in its Swedish business. In the current and coming year, Scan is to be moulded into an increasingly profitable venture while also making it an even more attractive and innovative partner for all of its stakeholders. Scan is already a leading player in its field in the Swedish market, and the plan now announced will provide an even stronger platform for future growth and performance. According to the road map, Scan would discontinue its production in Uppsala and at Kreatina AS, a company based in the Danish town of Bjaeverskov. Production in Skara would also be scaled down considerably. The slaughter and cutting of beef and lamb would be centralised to Linköping, while the majority of pork slaughter and cutting would take place in Kristianstad. The ground meat products business of Linköping-based subsidiary Esca would be transferred to Skara, where some pork slaughter operations would also remain. The production of consumer packed meat would transfer from Uppsala to Linköping. Collaboration would be explored in 2010 in respect of operations in Visby. Negotiations with the labour market parties aiming at implementation of the road map have been started and Scan will commence employer-employee negotiations on cutting roughly 400 jobs. Implementation of the road map would cut Scan's workforce from the current 3 000 to roughly 2 500. The potential job cuts would concern Skara, Uppsala and Kreatina AS in Bjaeverskov, Denmark. Upon implementation of the road map, Scan may be able to offer some employees jobs in Kristianstad and Linköping, i.e. the locations where production would centre. Employer-employee negotiations on cutting 95 white-collar jobs have already been started earlier and concern employees at all of the company's locations. The focus in business development at HKScan is now squarely on Sweden. The reorganisations and streamlining already completed in the current year have delivered higher profitability and stronger market standing. Scan has in place in Sweden both new executives and a new management system. The company is thus well poised to successfully follow through on the road map now announced. The scope of Scan's business along with its firm market leadership and leading brands provide a solid foundation for these steps. HKScan Corporation Matti Perkonoja Chief Executive Officer (CEO) Further information: Scan AB managing director Denis Mattsson, tel. +46 761 283 698 or +358 400 432 877. Please leave any messages for him to call with Pia Waldfogel, tel. +46 8 725 8111. A media/analyst briefing on Scan AB's road map will be held in Finland today, on Tuesday the 15th of September 2009, at 11:00 in the conference rooms of Hotel Haven, address Eteläranta 16 or Unioninkatu 17, Helsinki. Those wishing to attend are asked to notify HKScan Communications Manager Marja Siltala by email to marja.siltala@hkscan.com or by phone on +358 400 962290. An equivalent media briefing will be held in Sweden today, on Tuesday the 15th of September, at 15:00 local time at the head offices of Scan AB, address Lindhagensgatan 126, 112 51 Stockholm. Those wishing to attend this event are also asked to notify Marja Siltala. HKScan is one of the leading food companies in northern Europe with home markets in Finland, Sweden, the Baltics and Poland. HKScan manufactures, sells and markets pork and beef, poultry products, processed meats and convenience foods under several well-known local brand names. Its customers are retail, the HoReCa sector, industry and export customers. HKScan is active in nine countries and has some 10,000 employees. Annual net sales are 2.3 billion euro. DISTRIBUTION: Nasdaq OMX, Helsinki Main media www.hkscan.com |
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