Finland-based meat products group HKScan has said a plant in Sweden will close as part of plans to restructure its manufacturing network in the country.

HKScan is going through a major restructuring programme across its operations, which take in Scandinavia, Poland and the Baltic states.

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The company said today (4 March) it would “discontinue” operations at a site in the Swedish city of Örebro after deciding to move its production of skinless sausages further south to plant in Linköping. 

The company is moving pig slaughtering and cutting from a facility in Skara to a slaughterhouse in Kristianstad – and to a site owned by meats firm Siljans Chark 

The Linköping site will also take on beef cutting, while HKScan will sign a contract slaughtering agreement with local firm Skövde Slakteri.

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Around 140 jobs will be lost at its facilities in Örebro and Skara. The company said around 50 posts will be added across its sites in Kristianstad and Linköping.

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HKScan said the changes were set to be completed by the start of 2015. The revamp will cost EUR10.3m but the company hopes it lead to an improvement in profit worth EUR7m a year.

After the restructuring, HKScan’s production in Sweden will be “centralised and integrated at four key locations” in Kristianstad, Linköping, Halmstad and Skara, the company said.

“We trust that these changes will ensure far better capacity utilisation, a competitive cost base and opportunities for profitable growth,” Göran Holm, EVP of HKScan’s consumer business in Scandinavia, said. “HKScan is strongly committed to developing and investing in the Swedish meat business and value chain.”