Finland-based food group HKScan has announced plans to restructure parts of its operations in its domestic market and in Sweden to boost efficiency.
HKScan, which generated net sales of EUR2.1bn (US$2.73bn) in 2009, said the moves would result in job cuts in both markets but were designed to boost profits.
In Finland, HKScan plans to centralise more of its production. Pork slaughtering and cutting would move from Mellilä and be centralised in Forssa, while beef slaughtering and cutting will be centralised in Outokumpu. The production of processed meat products and convenience foods will move from Säkylä to HKScan’s “other” production facilities, it said.
HKScan said the changes to its Finnish operations would result in a cut of “250 person-years” throughout its domestic business by the end of 2011.
In Sweden, HKScan is expanding a restructuring programme it kicked off last year.
The production of food sausages would be centralised “mainly” at HKScan’s Lingköping site, the company said. Under the plans, frankfurter lines at the company’s Örebro production facility and sausage production at Kristianstad would be transferred to Lingköping.
HKScan also plans to transfer the production of semi-finished products under the Pärsons brand at its Ströveltorp site to its other production facilities.
The company’s restructuring programme will also see head office and administrative functions move from Skara and Stockholm to Linköping.
The Swedish restructuring will lead to a cut in jobs “from the current number to approximately 2,500”, HKScan said.
HKScan officials failed to return requests for further comment on the plans, including more specific details on the number of jobs to be cut.