HKScan New production facility planned
The investment is valued at approximately EUR 80 mill, and the new facility is scheduled for completion approximately at the end of 2017. The project will rank among the most significant production-related investments in HKScan history so far.
The added capacity and optimized technology enabled by the investment will allow the Group to develop innovative Kariniemen product novelties for the home and export markets. Faster processes will mark a further improvement in product quality.
Complying with HKScan’s Corporate Responsibility Programme, the new facility will adopt solutions to promote occupational health and safety and to maximize material, energy and environmental efficiency. Biosecurity related to risks of animal diseases will also improve.
The investment will safeguard long-term employment opportunities in the meat industry in western Finland. It will have significant direct and indirect employment impact. After reviewing the alternatives, HKScan and its personnel have together agreed that the new facility will employ close to 300 meat experts when completed from the end of 2017 onwards. Related statutory negotiations were concluded last week in Eura. The headcount reduction will not exceed 239 person-work years.
Now that the location of the facility has been decided officially, HKScan will apply for the necessary permits without delay in the hope of gaining approval from the authorities as soon as possible. Preliminary permit surveys have already been made. When the Rauma facility is completed approximately at the end of 2017 it will replace HKScan’s current production unit in Eura. It will remain in operation until the new facility opens. The investment will result in a non-cash write-down of the current Eura facility’s assets amounting to about EUR 11 mill.