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Go-ahead for HKScan Denmark Restructuring

29 January 2015

DENMARK – Meat processor HKScan Denmark has finished the statutory negotiations for its company’s restructuring.

The Finnish based company plans to improve operational efficiency and streamline its operational footprint through production capacity restructuring in Denmark.

The statutory negotiations started on 6 January.

The plan that was announced on 5 January and approved during the negotiation process involves the centralisation of slaughtering and deboning at the Vinderup plant and the ending of slaughtering and deboning at the Skovsgaard slaughter plant.

Packaging and warehousing will remain in Skovsgaard.

As a result of restructuring and organisational changes in Skovsgaard and Vinderup, 88 jobs are expected to go.

The organisational changes will to be completed by the end of March 2015.

HKScan Group said it is targeting an annual cost reduction and profit of more than €5 million, including efficiency measures related to the production restructuring.

HK Scan said the impact is expected to be seen from the second quarter 2015 onwards.

A non-recurring cost € 1.6 million related to the restructuring has been reported in the fourth quarter of 2014.

The planned actions aim to create an efficient production platform supporting the Group’s strategic goal of boosting profitable growth, HK Scan said.

TheMeatSite News Desk

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