Sector News

HKScan to restructure production set-up in Denmark

January 28, 2015
Food & Drink
HKScan Denmark A/S has concluded statutory negotiations related to plans to improve operational efficiency and streamline operational footprint through production capacity restructuring in Denmark. The statutory negotiations started on 6 January 2015.
 
The plan communicated on 5 January 2015 and approved during the negotiation process involves the centralization of slaughtering and deboning at the Vinderup facility and the discontinuation of slaughtering and deboning at the Skovsgaard facility. Packaging and warehousing will remain in Skovsgaard.
 
As a result of forthcoming restructuring and organizational changes in Skovsgaard and Vinderup, there will be a net headcount reduction of 88 positions. The organizational changes are scheduled to be completed by the end of March 2015.
 
With these actions HKScan Group is targeting an annualized cost reduction and profit improvement 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. A non-recurring cost item of EUR 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.
 
Source: HKScan Group
 

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