HKScan Oyj - Inside information

HKScan’s operating model reviewed – Group-wide statutory negotiations finalized

HKScan Corporation                                                   Stock
exchange release 3.5.2017, at 8:00 (EET) 


HKScan’s operating model reviewed– Group-wide statutory negotiations finalized

As announced in stock exchange release on 8 February 2017, HKScan initiated a
review of the Group’s operating model. The potential impacts on personnel of
the planned operating model renewal and planned efficiency upgrades were
assessed in Group-wide statutory negotiations that were carried out in
compliance with procedures legally stipulated in each country. The negotiations
concerned white-collar personnel, senior white-collar personnel and management
in all HKScan countries. 

The Group has now finalized the review process, including country-based
statutory negotiations. During the review process, the Group has received
valuable insights and proposals from all the involved participants of the
process, and the negotiations were conducted in good co-operation and solution
oriented manner in all countries. 


New operating model and its impact on personnel

Based on the review and statutory negotiations, the Group has now decided to
embark on a partial re-organization of its operations and to establish an
operating model, which will be constructed based on  Operations, Concepts and
Categories, Market Areas: Finland, Sweden, Denmark, Baltics, International &
Biotech, as well as Business Services. New way to operate will ensure a sharper
focus on consumers and customers, improve the efficiency and transparency of
the food value chain from farm to fork, and the productivity of internal
processes. 

The decided changes on the operating model will have impacts on existing
employment relationships and their terms. The Group-wide headcount reduction
will be 160 persons, of which 106 will be terminations of employments by notice
or through outsourcing, and 54 will be based on other reasons, such as not
renewing fixed-term employments and not replacing positions, from which
employees have resigned by themselves. 

The Group will now initiate the implementation of the new operating model. It
will be in place on 1 June 2017. 


HKScan Corporation
Jari Latvanen
President and CEO

For further information:
- Jari Latvanen, President and CEO, HKScan Corporation
Kindly submit a call-back request via Marja-Leena Dahlskog, SVP Communications,
tel. +358 10 570 2142 


HKScan is the leading Nordic food company. We sell, market and produce
high-quality, responsibly-produced pork, beef, poultry and lamb products,
processed meats and convenience foods under strong brand names. Our customers
are the retail, food service, industrial and export sectors, and our home
markets comprise Finland, Sweden, Denmark and the Baltics. We export to close
to 50 countries. In 2016, HKScan had net sales of nearly EUR 1.9 billion and
some 7 300 employees. 


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