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HKScan to slash 211 jobs in Finland to improve profitability

FBR Staff Writer Published 26 June 2018

Nordic meat and meals company HKScan said that it will slash 211 jobs in Finland as part of its plans to rationalize its production operations in the country.

The company is planning to rationalize and adjust its production operations in Finland in order to improve the profitability and competitiveness of its business.

In this regard, HKScan will begin statutory negotiations with its production and logistics personnel, working across its Vantaa, Forssa, Mikkeli, Paimio and Outokumpu plants.

HKScan operations EVP Sami Sivuranta said: “Our goal is to significantly increase the flexibility and efficiency of our production, thereby strengthening our competitiveness and improving profitability.”

The Finnish meat processing firm said that cooperation negotiations will be held at each of the locations.

Employees engaged in white-collar tasks in production and logistics, and also in professional or managerial duties at the locations will not be impacted by the job cuts.

Similarly, employees at the company’s Rauma plant will be spared from the job cuts. The €80m Rauma poultry unit was opened in last August.

Apart from the cancellation of 211 employment contracts, HKScan expects to make changes to employment terms. The company said that as the negotiations move ahead, it will be possible to define potential personnel effects and their allotment in a more detailed manner.

Last year, HKScan announced that it would cut 160 jobs after a drop in its revenue to €1.87bn in 2016, which lead to a review of its overall operations. Last year, HKScan, which owns brands such as HK, Scan, Rakvere, Kariniemen, Rose, Pärsons and Tallegg, reported net sales of €1.8bn.

With a workforce of more than 7,300 people, HKScan produces, markets and sells pork, beef, poultry and lamb products, and also charcuterie and meals, which it exports to more than 50 countries.

In late April, HKScan started exporting its pork products like sirloin and tenderloin manufactured from its Forssa plant in Finland to China. The Forssa production unit, which holds licenses to export its pork products to the US, Russia and other markets, was granted an export permit by Chinese food authorities in last 2017.


Image: HKScan corporate headquarters in Turku, Finland. Photo: courtesy of Kreegah/Wikimedia Commons.