Meat company HKScan Group has announced plans to restructure its production capacity in Denmark in a bid to streamline its operational footprint.
The actions will enable the company to improve operational efficiency and will help create a better production platform supporting its strategic goal of boosting profitable growth.
In Denmark, HKScan has production facilities in Vinderup and Skovsgaard.
According to the company, the restructuring will centralise poultry slaughtering and cutting at the Vinderup facility, where investments and rebuild were completed over the past two years to increase its slaughtering and deboning capacity.
Packaging and warehousing will continue to remain in Skovsgaard facility.
The restructuring is slated for completion by the end of March 2015 and is said to result in a net headcount reduction of about 85-95 employees in total.
Expected to commence on 6 January 2015, the restructuring plan is subject to statutory negotiations and causes a non-recurring cost of €1,6m.
The targeted annualized cost reduction and profit improvement is more than €5m, including efficiency measures related to the production restructuring.
HKScan Denmark general manager Anders Jeppesen Jensen said: "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."
