HKScan to streamline meat operations in Sweden

Finnish meat products manufacturer HKScan is set to streamline its meat operations in Sweden to improve its operational efficiency, production set-up and technology footprint in the country.

The plan to restructure is part of Nordic meat producer HKScan Group’s strategic review in Sweden to create a sustainable production platform for profitable growth.

Scheduled to start in Sweden, the restructuring is expected to conclude before 2015.

It necessitates an investment of around €0.6m, while incurring non-recurring costs of about €10.3m.

As part of the plan, the company will cease pig slaughtering and cutting at its facility in Skara; however, the site will continue the production of meatballs, hamburgers and other convenience foods.

Pig slaughtering operations will be handled by HKScan’s Kristianstad slaughterhouse, along with its associated company Siljans Chark, which is based in Ickholmen.

In addition, the company’s operations will be backed by a contract agreement with Skövde Slakteri.

HKScan will also discontinue operations in Örebro and move the production of skinless sausages to its Linköping site.

Around 140 jobs will be affected, mainly at the Örebro and Skara units, while HKScan plans to create around 50 new jobs at the Linköping and Kristianstad sites.

Following the implementation of the strategy, the company’s production will be located at Kristianstad, Linköping, Halmstad and Skara.

HKScan Consumer Business Scandinavia EVP Göran Holm said, "After a thorough strategic review and analysis of all relevant alternatives, we trust that these changes will ensure far better capacity utilisation, a competitive cost base and opportunities for profitable growth."

The company offers pork, beef, poultry and lamb products, processed meats and convenience foods to retail, food service, and industrial segments, and exports to around 50 countries.

For the fiscal 2013, it reported net revenues of €2.5bn.

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Image: HKScan expects to complete the restructuring process before 2015. Photo courtesy of Grant Cochrane at FreeDigitalPhotos.net.