HKScan to establish new Asian offices

Finland meat and poultry company HKScan will establish a sales office in Hong Kong this year as a local presence in the Asian market will be critical in order to enhance the value of the group’s export business, the company says.
It also plans to office a sales office in China as soon as the necessary approvals are secured from the Finnish authorities and exports from Finland to China commence.
Chinese inspectors  visited a number of HKScan’s slaughter facilities in Finland last year and pork is expected to be first of the company’s products to enter the Chinese market, followed by poultry meat, processed meat and convenience meals.
The company, which already exports to some 50 countries, is also planning that the Hong Kong office will assume responsibility for marketing and customer service in other Far Eastern markets, while the Chinese sales office will focus exclusively on the Chinese market.

HKScan Estonian egg business divestiture finalized

HKScan has finalized the sale of its Estonian egg business, OU Koks Munatootmine, to Dava Foods Holdings of Denmark.
The divesture sees Dava gain access to the Baltic markets. It takes over a farm specializing in the rearing of day old chicks, an egg production facility and an egg packing plant. OU Koks Munatootmine has an annual turnover of EUR6.7 million (US$7.1 million) and employs around 35 people.
With a turnover of EUR133 million, Dava Foods is the market leader in the Nordic region in the egg sector, and is active in the production, processing, packing and distribution of fresh eggs, as well as producing boiled and pasteurized egg products.
The sale of OU Koks Munatootmine was first announced late last year, but completion of the transaction was subject to approval by the competition authorities.
HKScan  has also announced the sale by HKScan Finland and DanHatch AS of Denmark of HKScan Finland’s hatchery business and related real estate assets to DanHatch Finland, an associated business co-owned by the two companies. HKScan Finland has a 20 percent holding, with DanHatch owning the remaining 80 percent. 

HKScan to launch Finnish pork exports to China

HKScan Group, one of Europe’s leading meat companies, will soon begin exporting Finnish pork to China. HKScan Finland’s pork slaughtering facility in Forssa is going to gain export certification from the Chinese food authorities following inspections carried out in August 2014.
The launch of Finnish pork exports to China will be a major milestone in HKScan’s strategy to expand its export footprint, affirmed Jukka Nikkinen, head of HKScan’s exports business. Direct exports of Finnish meat to China were not possible prior to certification. In addition to pork, HKScan has long-range plans to begin exporting other meat products suited to local culinary preferences. These include poultry meat, processed meats and convenience meals.
“We devoted much time and effort into preparing this export project together with the authorities. The strong support of the Finnish authorities and close collaboration between our industry, political decision-makers and officials have been crucial to its progress”, adds Nikkinen. “After the forthcoming official export certification, we will continue our efforts to gain similar approvals for Swedish exports.”
HKScan exports pork to a number of EU countries and to long-haul markets including New Zealand and Japan. Russia was formerly another major export destination. The opening of a new export market for Finnish foodstuffs is important in the wake of the import bans imposed by Russia last January.


Chinese demand pork that is pure, safe, nutritious, responsibly produced
Chinese customers and consumers appreciate the pure, chemical-free, safe and responsibly produced reputation of Finnish meat, says Nikkinen. Other assets in favor of Finnish meat exports include a transparent production chain, traceability of raw materials and absence of animal diseases. Unlike many other countries in Europe and worldwide, Finland adheres to a zero-tolerance policy on diseases such as Salmonella, Nikkinen added.
Healthy eating is a rising trend in China, particularly among young urbanites. HKScan caters to this health-conscious trend with products such as its tender and tasty HK Rypsiporsas rapeseed pork.
HKScan’s Forssa production facility that will gain export certification from China has already gained export certifications from the U.S. and Russia. The plant has approximately 500 employees.
Roughly 60 percent of the pork exported from Finland comes from HKScan’s Forssa facility. HKScan currently exports meat to close to 50 countries.

HKScan restructuring production operations in Denmark

HKScan Group, a leading Nordic meat and poultry company, 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 HKScan’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 begin on January 6.
The targeted annualized cost reduction and profit improvement is in excess of EUR5 million (US$5.96 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 EUR1.6 million (US$1.9 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,” said Anders Jeppesen Jensen, general manager of HKScan Denmark A/S.
HKScan is the largest poultry company in Denmark with net sales totaling EUR225 million (US$268 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.

HKScan sells Estonian egg business

HKScan has announced a number of changes to egg businesses.
The company is selling its Estonian egg business OU Koks Munatootmine to Dava Food Holdings of Denmark. The divestment of OU Koks Munatootmine, which has annual net sales of EUR6.7 million (US$8.2 million), is subject to approval by the competition authorities. Employees of the business will continue to work fo OU Koks Munatootmine.
HKScan has also announced an agreement between HKScan Finland Oy and Denmark’s DanHatch involving the sale of its Finnish hatchery business to DanHatch Finland Oy, which will become a joint venture between the two companies.
HKScan employees working at the hatcheries in Myamakia and Kokemaki will transfer to DanHatch Finland Oy. On completion, HKScan Finland Oy will have a 20 percent share in the company, with DanHatch owning the remainder.
“DanHatch has a solid track record in the hatchery business in Noerthern Europe and we are pleased to have a business partner that is highly dedicated to the business,” said Hannu Kottonen, president and CEO of HKScan.

HKScan mulls poultry investment in Finland

HKScan is considering investments in its poultry operations in Finland.
The company is looking to invest EUR35 million to 65 million (US$44 million to 82 million) in western Finland, and two options are under consideration.
The company is considering whether to renovate and expand its existing Eura facility, or whether to build a new plant in a different location in the region. The Eura site is Finland’s largest production plant specializing in poultry and produces the company’s Kariniemen brand.
The company wants to modernize its chicken slaughtering, cutting and production processes in Finland, and says that by investing in state-of-the-art technology it will be able to develop new products in response to changing consumer preferences, as well as significantly improve productivity and efficiency.
The planning stage is scheduled to run through summer 2015. This latest announcement comes on the back of investments made recently in Estonia and Denmark.

HKScan Group commits to the use of responsibly produced soy

Finland-based meat and poultry producer HKScan has become a member of the Round Table on Responsible Soy Association (RTRS) and thereby committed itself to continuously promoting greater ethical responsibility in the supply chain of soy used in animal feed. HKScan will ensure that by the end of 2018, all soy used in its entire meat value chain will meet the strict requirements of the RTRS.
Soy is an important protein source in animal feed, HKScan officials say, and commitment to using responsibly produced soy is a key part of sustainable meat production, responding to stakeholders' expectations of high standards of responsibility throughout the entire meat value chain.
"We are gratified to see that our stakeholders' interest in sustainable meat production is growing day by day. Our commitment to responsible soy is an important step forward," said CEO Hannu Kottonen. "Sustainable meat production begins with sustainable feed production. We will, together with our suppliers in all our home markets - Finland, the Baltic countries, Sweden and Denmark - continuously move towards our responsibly produced soy target over the next five years."
Soy used in Europe is typically exported from South America. The RTRS stipulates principles, criteria and third-party audits to ensure that national and regional legislation is followed. It also provides assurance of good working conditions, environmental responsibility and sound agricultural practices. With HKScan being one of largest meat producers in Europe, its commitment to the RTRS will contribute substantially to responsible soy development.
There are various problems and challenges which may be associated with soy cultivation today. Current land-use practices in conventional production threaten biodiversity, disrupt natural ecosystems and exacerbate global warming. Hazardous pesticides which are abandoned in Europe may be used with inadequate practices, exposing both locals and workers. Other ethical issues include deprivation of land from local farmers, remuneration of workers below minimum wages, and even instances of slavery. HKScan is thus strongly committed to promoting more responsibly produced soy, ensuring that the entire value chain from animal feed to the consumer's plate is environmentally and socially sustainable.

HKScan to exit joint venture Saturn Nordic Holdings

HKScan has signed an agreement to sell its 50 percent holding in Saturn Nordic Holdings to Danish Crown, the joint owner of the company, for Euro 180 million (US$248 million).
Saturn Nordic Holding, established in 2004 with Danish Crown, holds 100 percent of the shares in Polish meat processing company Sokolow. HKScan will no longer hold an indirect stake in Sokolow, which has been its joint venture in Poland; however, it will retain its wholly owned Polish subsidiary, HKScan Poland. 

HKScan to unify name across markets

HKScan's corporate name structure is to be unified in all countries in which it operates.
Each company name will lead off with the common HKScan prefix followed, in most cases, by the relevant country name in English. The schedule for the change is yet to be announced and will see names such as Ruokatalo, Scan and Rose Poultry disappear.
All group functions related to animal sourcing and producer services will uniformly adopt the name HKScan Agri on all HKScan home markets, while the company's away from home offering will be marketed under the HKScan Pro and HKScan brands.
The new naming structure is intended to clarify the HKScan brand strategy and strengthen the company's identity both internally and externally. It follows strategic and organizational reforms initiated in 2012 to improve profitability and operational efficiency and to build a stronger, unified corporate structure.

HKScan streamlines corporate structure in Finland

The end of 2012 saw Jarvi-Suomen Portti Oy and Helanderin Teurastamo Oy merge into HK Ruokatalo, which is now a direct wholly owned subsidiary of HKScan Corporation, a leading northern European food company which manufactures, sells and markets poultry, pork and beef products.
By simplifying its corporate structure, said HKScan, it aims to harmonize the group’s operational processes and streamline its international administration. The mergers are of a legal nature and will have no impact on employees.