FINLAND, Turku HKScan Group continues to streamline its operational footprint. The Group aims to improve operational efficiency by restructuring its production capacity in Denmark, where the Group has production facilities in Vinderup and Skovsgaard. The planned actions will create an efficient production platform supporting the Group’s strategic goal of boosting profitable growth.
The restructuring will centralise poultry slaughtering and cutting at the Vinderup facility. The investments and rebuild completed at Vinderup over the past two years have increased HKScan’s slaughtering and deboning capacity, resulting in excess capacity. Packaging and warehousing will remain based in Skovsgaard. Scheduled for completion by the end of March 2015, the restructuring will result in a net headcount reduction of approximately 85–95 employees in total, involving reorganisation both in Skovsgaard and Vinderup. The plan is a subject to statutory negotiations, which will begin on 6. January 2015.
The targeted annualised cost reduction and profit improvement is in excess of € 5 mill., including efficiency measures related to the production restructuring. The impact is targeted to materialise from the second quarter 2015 onwards. The restructuring causes a non-recurring cost of € 1,6 mill., which will be reported in the fourth quarter of 2014.
HKScan is the largest poultry company in Denmark with net sales totaling € 225 mill. in 2013 and approximately 750 employees. The company sells, markets and produces poultry-based products mainly under the Rose brand, which is also exported widely.