HKScan is to centralise its Baltic poultry production at its renovated Tabasalu facility in Estonia as part of plans to improve operational efficiency in its home markets.
The Finnish food group said today (23 September) that from the beginning of 2014, the Tabasalu plant will be responsible for slaughtering, cutting, deboning and processing of poultry meat for the entire Baltic region.
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The facility will take over the production of poultry products previously manufactured at the Loo facility near Tallinn. The company did not reveal whether any jobs would be affected by the move.
The firm is currently undergoing a streamlining of its production structure and is centralizing its technology and raw material base in its home markets in a bid to improve operational efficiency and production management.
The Tabasalu facility has been modernised and expanded in stages over the last few years, with the last of new lines to be installed by the end of this year. The EUR13.5m investment will enable Tallegg to double its Baltic production capacity and respond to growing demand for poultry products in Estonia and export markets, HKScan said.
The facility manufactures a range of products sold chiefly in the Baltic countries, including Tallegg fresh chicken products, smoked poultry products, marinated and oven products.
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By GlobalData“Bringing added capacity, this investment also enhances our technological capabilities, supporting the development of the Tallegg brand and improving the quality and shelf life of our products,” said Teet Soorm, general manager of HKScan Baltics.
Certain primary units will remain operational at the Loo facility, including a poultry feed factory, chicken hatchery, chicken farm and egg production.
In January, HKScan announced a number of management appointments that it said would strengthen its management team and allow the Finnish meat group to drive synergies. Months later, the group shed 123 jobs at its Finnish operations as part of its restructuring initiative.
