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HKScan to Restructure Production in Denmark

06 January 2015

DENMARK - Scandinavian meat processor HKScan Group is to centralise its Danish poultry slaughtering and deboning at its Vinderup processing plant.

The move is part of the company’s programme to streamline its operations and improve efficiency by restructuring its production capacity in Denmark, where the Group has production plants in Vinderup and Skovsgaard.

The company said the changes will create an efficient production platform supporting the Group’s strategic goal of boosting profitable growth.

While poultry slaughtering and cutting will be centred at the modern Vinderup facility, where investments have seen a rebuild completed at over the past two years increasing 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 cut in staff of 85-95 employees, involving reorganization both in Skovsgaard and Vinderup.

The plan is a subject to statutory negotiations, which will begin on 6 January 2015.

HKScan expects the savings and improve profits will be about €5 million a year, including efficiency measures related to the production restructuring.

The changes are expected to be implemented from the second quarter 2015.

The restructuring will see a cost of €1.6 million, which will be reported in the fourth quarter of 2014.

"We need to adjust our production capacity in line with market demand. At the same time, cost reductions are required. We want to get our Danish operation back in balance after the rebuild following the fire of June 2012 and start investing in growth opportunities.

“We are confident that by realizing the plan, we can improve capacity utilisation and create a competitive cost base and new opportunities for profitable growth. HKScan is committed to developing and investing in Danish business and production,” said Anders Jeppesen Jensen, General Manager of HKScan Denmark A/S.

HKScan is the largest poultry company in Denmark with net sales reaching €225 million in 2013 and approximately 750 employees.

TheMeatSite News Desk



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