Finnish meat firm HKScan has announced plans to streamline its operations in Sweden in a bid to cut costs by EUR10m (US$12.3m) a year.

The group, which reported an operating loss from its Swedish business last week, said local subsidiaries, Scan and Pärsons, will be merged into one business unit to be called HKScan Sweden. They will, however, continue as separate brands.

In addition, the group will merge its commercial, production and logistics organisations in the country. This will involve the end of production at its Strövelstorp plant and the subsequent transfer of production to facilities located in Halmstad and Kristianstad. The moves will potentially lead to 150 jobs being cut.

In April, the company announced the launch of a two-year programme that aims to generate EUR20m in annual performance improvements. The company added that it would consider “long-term strategic alternatives” for its Swedish business, without providing further details.

HKScan said “removing current overlapping” would “clarify and speed up” its main processes and improve efficiencies.

As part of the plan, the company has promoted Magnus Lindholm to the role of director of operative activities in Sweden as of 1 September.

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Denis Mattsson, executive vice president of HKScan’s operations in Sweden and Denmark will retire at the end of 2012. Recruitment for a successor has started, the firm said.

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