HKScan Oyj
HKScan plans major production investments in western Finland and Rakvere, Estonia

HKScan Oyj 

13.10.2014 07:45

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HKScan Corporation                                   Stock exchange release, 13
October 2014, at 8:45am 



HKScan plans major production investments in western Finland and Rakvere,
Estonia 

In line with its strategic intent to boost profitable growth, HKScan is
actively restructuring its production. The HKScan Board of Directors has given
the permission to proceed with planning two major investment projects. The
first is a prospective EUR 35-65 million facility in western Finland, and the
other is a EUR 20 million production facility to be located in Rakvere,
Estonia. The production facility will enable HKScan to develop its branded
offering for growing segments, enhance its product quality, improve working
conditions and safety, and reduce environmental impacts. The investment
projects will also support HKScan in streamlining its production structure,
integrating its technology and thereby improving operational efficiency. 

Kariniemen's success story to continue

Demand for pure, fresh, flavoursome, all-domestic poultry meat has grown at a
steady pace of 2-4 per cent annually over the past few decades. This trend is
expected to continue. Last year poultry meat consumption in Finland averaged
nearly 20 kg per capita. HKScan's Finnish poultry brand is Kariniemen.
Kariniemen-brand products are produced at HKScan's Eura facility, which is
Finland's largest production plant specializing in poultry. 

HKScan has invested in the steadily expanding poultry segment both in Finland
and its other markets. Last year HKScan opened a new poultry facility in
Tabasalu, Estonia, which produces poultry products for the entire Baltic
market. HKScan's poultry brand in the Baltics is Tallegg. HKScan has
additionally modernized its poultry plant in Vinderup, Denmark, where its
poultry brand is Rose. 

Chicken facility investment in western Finland

The final sum to be invested in the chicken facility in western Finland will be
EUR 35-65 million depending on which option is chosen. HKScan will review
whether to renovate and expand the existing Eura facility or whether to build a
wholly new plant in a different location in western Finland. 

The intent is to modernize HKScan's chicken slaughtering, cutting and
production processes. State-of-the-art technology will enable HKScan to develop
new products for changing consumer preferences, as well as to significantly
improve productivity and energy and material efficiency. 

If the project proceeds, its will provide job security to most of the
industrial personnel employed by HKScan in western Finland. It will also offer
growth opportunities and guarantee the continuity of the entire west Finnish
chicken value chain. In addition to jobs provided directly by the plant, the
project will also have a significant indirect impact on local employment. There
are numerous entrepreneurs in HKScan's chicken production  chain, such as
hatcheries, freight forwarders, chicken breeders, feed suppliers and the
fertilizer industry. 

The planning stage is scheduled to run through summer 2015. During that time,
HKScan will look in-depth into the two alternatives, clarify permit
requirements and assess environmental impacts. For the investment to go ahead,
the local infrastructure must offer a sustainable water and wastewater
infrastructure. Before the final decision is made, HKScan will also clarify
potential personnel impacts and any need for further investment in primary
production. 

New production facility in Rakvere, Estonia

The investment planned for Rakvere, Estonia amounts to roughly EUR 20 million.
The final sum will depend on which option is chosen. HKScan provisionally plans
to add a new 10 000 m2 y production facility alongside its existing plant in
Rakvere. The new facility is to be equipped with advanced technology suited to
producing value-added products for growing product segments. The planned
investment is geared particularly toward developing the offering of the new
Group brand, Flodins. The planning phase is scheduled to run through spring
2015. HKScan's Rakvere unit currently comprises pork and beef slaughtering and
cutting operations, meat processing facilities, and a logistics centre serving
all of HKScan's Estonian operations. 

HKScan Corporation

Hannu Kottonen
CEO



For further information:
Hannu Kottonen, CEO, HKScan Group
Aki Laiho, COO, HKScan Group
Samuli Eskola, Executive Vice President, Consumer Business, Finland and
Baltics, HKScan Group 
Kindly submit a callback request via Marja Siltala, VP Communications,
marja.siltala@hkscan.com, tel. +358 10 570 2290 



HKScan is the leading Nordic meat expert. 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. HKScan's net sales total EUR 2.1 billion and we have some 7
700 employees, making us one of the Europe's leading meat companies. 



For distribution to:
NASDAQ OMX Helsinki
Main media
www.hkscan.com
News Source: NASDAQ OMX



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Language:     English
Company:      HKScan Oyj
              
               
              Finland
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         FI0009006308
WKN:          
 
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