Sector News

HKScan plans to restructure production set-up in Denmark

January 5, 2015
Food & Drink
HKScan Group, a leading Nordic meat company, 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 centralize poultry slaughtering and cutting at the modern 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 reorganization both in Skovsgaard and Vinderup. The plan is a subject to statutory negotiations, which will begin on 6. January 2015.
 
The targeted annualized cost reduction and profit improvement is in excess of EUR 5 million, including efficiency measures related to the production restructuring.  The impact is targeted to materialize from the second quarter 2015 onwards. The restructuring causes a non-recurring cost of EUR 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 utilization and create a competitive cost base and new opportunities for profitable growth. HKScan is committed to developing and investing in Danish business and production,” says Anders Jeppesen Jensen, General Manager of HKScan Denmark A/S.
 
HKScan is the largest poultry company in Denmark with net sales totaling EUR 225 million in 2013 and approximately 750 employees. The company sells, markets and produces poultry-based products mainly under the well-known Rose brand, which is also exported widely.
 
Source: HKScan

comments closed

Related News

May 21, 2022

Cécile Béliot becomes Bel Group CEO

Food & Drink

Cécile Béliot has assumed the role of Bel Group chief executive officer, following the decision to separate the roles of chairman and CEO. The separation of the functions will enable Bel Group to develop in three areas of healthy snacking. Meanwhile, the company’s former CEO, Antoine Fiévet, has had his mandate renewed as chairman of the board.

May 21, 2022

“Corporate greed and dereliction of duty”: FDA commissioner slammed over infant formula shortage

Food & Drink

US Food and Drug Administration (FDA) Commissioner Dr. Robert Califf was grilled by lawmakers during a House Appropriations subcommittee hearing, where he was slammed over the agency’s handling of the escalating infant formula shortage.

May 21, 2022

Sweegen hails antioxidants and bitter blocking tech a turning point for sugar reduction and healthy aging

Food & Drink

Sweegen is ramping up its efforts to reduce sugar across F&B applications while simultaneously tapping into the benefits of using antioxidants and bitter blocking technology. Speaking to FoodIngredientsFirst, Casey McCormick, vice president of global innovation at Sweegen, says product developers can find a broad range of solutions in Sweegen’s nature-based sweetener systems as brands elevate better-for-you foods.