HKScan eyes added-value poultry sales with new facility investment

HKScan eyes added-value poultry sales with new facility investment

HKScan is preparing to invest approximately EUR80m (US$89.1m) to construct a production facility in Rauma, Finland.

The Finnish meat group has increased its investment in production, rationalising and modernising its network in a bid to support profitable growth. The new facility, scheduled for completion in 2017, is part of the efficiency drive, HKScan said today (1 October). It replaces an existing site in Eura the company deemed infeasible. The plan to close Eura was announced in August

HKScan said almost 300 people would be employed at its new facility from 2017. The company said workforce reductions at Eura would therefore "not exceed" 239 person-work years. Worker consultations have started.

"Our productivity will improve significantly thanks to state-of-the-art technology, automation and greater overall process efficiency. At the same time, we will be able to utilise side-streams more efficiently for the production of biotech products. The investment will also generally improve our environmental efficiency," CEO Hannu Kottonen said.

The site's capacity and technology will enable HKScan to up production of Kariniemen products for domestic and export markets. "The investment will strengthen HKScan's foothold on the rapidly expanding poultry market and in value-added product categories, which are our strategic focus segments," Kottonen asserted.