Finnish food company HK Ruokatalo has said it is to restructure, and plans to merge its domestic industrial operations, sales, marketing and logistics into one company, rather than the five companies currently responsible for these operations.
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The company, which produces fresh meat, processed meats and convenience foods, said that various corporate acquisitions over the past few years have left HK Ruokatalo with a rather disjointed group structure.
“Making one company responsible for our industrial operations at home will enhance the business itself, harmonise working practices and the corporate culture and cut operating costs,” HK Ruokatalo said.
The company plans to carry out the restructuring in Finland in two stages. In the first stage, the plan is to merge HK Ruokatalo Oyj’s fully-owned subsidiaries Broilertalo Oy, Food Kuljetus Oy, Koiviston Teurastamo Oy and Pouttu Foods Oy into HK Ruokatalo Oyj. In the second stage, domestic industrial operations, including employees, will be merged into a separate subsidiary. HK Ruokatalo’s procurement company LSO Foods Oy, which is responsible for the procurement of beef and pork and for providing consultation to support primary production, remains outside the restructuring project.
HK Ruokatalo said it intends to begin the restructuring this autumn and expects to finish within six months. Restructuring will not affect numbers of employees, the company added.
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By GlobalDataHK Ruokatalo also aims to have just one company responsible for industrial operations in each of its principal market areas. In the near future, the group’s business in the Baltic market area will be reorganised to cover the entire Baltic region instead of each country as at present. Sokolów, the Polish company owned jointly by HK Ruokatalo and Danish Crown, will be responsible for industrial operations in the Polish and Central European market.
