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HKScan Plans Major Investments in Finland and Estonia

13 October 2014

FINLAND - Finnish based meat processor HKScan is actively restructuring its production with two major investment projects.

The first is a prospective €35- to €65-million plant in western Finland, and the other is a €20-million production plant to be in Rakvere, Estonia.

The production plant will enable HKScan to develop its branded offering for growing segments, enhance its product quality, improve working conditions and safety, and reduce environmental impacts.

The investment projects will also support HKScan in streamlining its production structure, integrating its technology and thereby improving operational efficiency.

Kariniemen’s Success Story to Continue

Demand for pure, fresh, flavoursome, all-domestic poultry meat has grown at a steady pace of two to four per cent annually over the past few decades.

This trend is expected to continue. Last year poultry meat consumption in Finland averaged nearly 20kg per capita. HKScan’s Finnish poultry brand is Kariniemen.

Kariniemen-brand products are produced at HKScan’s Eura facility, which is Finland’s largest production plant specialising in poultry.

HKScan has invested in the steadily expanding poultry segment both in Finland and its other markets. Last year, HKScan opened a new poultry facility in Tabasalu, Estonia, which produces poultry products for the entire Baltic market.

HKScan’s poultry brand in the Baltics is 'Tallegg'. HKScan has additionally modernised its poultry plant in Vinderup, Denmark, where its poultry brand is 'Rose'.

Chicken Facility Investment in Western Finland

The final sum to be invested in the chicken facility in western Finland will be €35 to €65 million, depending on which option is chosen.

HKScan will review whether to renovate and expand the existing Eura facility or whether to build a wholly new plant in a different location in western Finland.

The intention is to modernise HKScan’s chicken slaughtering, cutting and production processes.

State-of-the-art technology will enable HKScan to develop new products for changing consumer preferences, as well as to significantly improve productivity and energy and material efficiency.

If the project proceeds, it will provide job security to most of the industrial personnel employed by HKScan in western Finland.

It will also offer growth opportunities and guarantee the continuity of the entire west Finnish chicken value chain. In addition to jobs provided directly by the plant, the project will also have a significant indirect impact on local employment.

There are numerous entrepreneurs in HKScan’s chicken production chain, such as hatcheries, freight forwarders, chicken breeders, feed suppliers and the fertiliser industry.

The planning stage is scheduled to run through summer 2015.

During that time, HKScan will look in-depth into the two alternatives, clarify permit requirements and assess environmental impacts.

For the investment to go ahead, the local infrastructure must offer a sustainable water and wastewater infrastructure.

Before the final decision is made, HKScan will also clarify potential personnel impacts and any need for further investment in primary production.

New Production Plant in Rakvere, Estonia

The investment planned for Rakvere, Estonia amounts to roughly €20 million. The final sum will depend on which option is chosen. HKScan provisionally plans to add a new 10,000-square metre production facility alongside its existing plant in Rakvere.

The new facility is to be equipped with advanced technology suited to producing value-added products for growing product segments.

The planned investment is geared particularly toward developing the offering of the new Group brand, Flodins.

The planning phase is scheduled to run until spring 2015.

HKScan’s Rakvere unit currently comprises pork and beef slaughtering and cutting operations, meat processing facilities, and a logistics centre serving all of HKScan’s Estonian operations.

ThePoultrySite News Desk

Top image via Shutterstock

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