HKSCAN ANNOUNCES ROAD MAP SEEKING DEVELOPMENT BENEFITS OF EUR 30 MILLION IN SWEDEN

HKScan Corporation     STOCK EXCHANGE RELEASE     15 September 2009 at 8am


HKSCAN ANNOUNCES ROAD MAP SEEKING DEVELOPMENT BENEFITS OF EUR 30 MILLION IN
SWEDEN 

Major structural streamlining envisioned to deliver development benefits of EUR
30 million is planned for HKScan's Swedish subsidiary Scan AB by the end of
2010. An investment of EUR 12 million is to be made over the same time in the
Swedish business. The measures would give rise to non-recurring charges of
roughly EUR 5 million. 

The plan is designed to achieve HKScan's EBIT target of five percent of net
sales in its Swedish business. In the current and coming year, Scan is to be
moulded into an increasingly profitable venture while also making it an even
more attractive and innovative partner for all of its stakeholders. Scan is
already a leading player in its field in the Swedish market, and the plan now
announced will provide an even stronger platform for future growth and
performance. 

According to the road map, Scan would discontinue its production in Uppsala and
at Kreatina AS, a company based in the Danish town of Bjaeverskov. Production
in Skara would also be scaled down considerably. The slaughter and cutting of
beef and lamb would be centralised to Linköping, while the majority of pork
slaughter and cutting would take place in Kristianstad. The ground meat
products business of Linköping-based subsidiary Esca would be transferred to
Skara, where some pork slaughter operations would also remain. The production
of consumer packed meat would transfer from Uppsala to Linköping. Collaboration
would be explored in 2010 in respect of operations in Visby. 

Negotiations with the labour market parties aiming at implementation of the
road map have been started and Scan will commence employer-employee
negotiations on cutting roughly 400 jobs. Implementation of the road map would
cut Scan's workforce from the current 3 000 to roughly 2 500. The potential job
cuts would concern Skara, Uppsala and Kreatina AS in Bjaeverskov, Denmark. 

Upon implementation of the road map, Scan may be able to offer some employees
jobs in Kristianstad and Linköping, i.e. the locations where production would
centre. 

Employer-employee negotiations on cutting 95 white-collar jobs have already
been started earlier and concern employees at all of the company's locations. 

The focus in business development at HKScan is now squarely on Sweden. The
reorganisations and streamlining already completed in the current year have
delivered higher profitability and stronger market standing. Scan has in place
in Sweden both new executives and a new management system. The company is thus
well poised to successfully follow through on the road map now announced. The
scope of Scan's business along with its firm market leadership and leading
brands provide a solid foundation for these steps. 


HKScan Corporation


Matti Perkonoja
Chief Executive Officer (CEO)


Further information:
Scan AB managing director Denis Mattsson, tel. +46 761 283 698 or +358 400 432
877. Please leave any messages for him to call with Pia Waldfogel, tel. +46 8
725 8111. 


A media/analyst briefing on Scan AB's road map will be held in Finland today,
on Tuesday the 15th of September 2009, at 11:00 in the conference rooms of
Hotel Haven, address Eteläranta 16 or Unioninkatu 17, Helsinki. Those wishing
to attend are asked to notify HKScan Communications Manager Marja Siltala by
email to marja.siltala@hkscan.com or by phone on +358 400 962290. 

An equivalent media briefing will be held in Sweden today, on Tuesday the 15th
of September, at 15:00 local time at the head offices of Scan AB, address
Lindhagensgatan 126, 112 51 Stockholm. Those wishing to attend this event are
also asked to notify Marja Siltala. 


HKScan is one of the leading food companies in northern Europe with home
markets in Finland, Sweden, the Baltics and Poland. HKScan manufactures, sells
and markets pork and beef, poultry products, processed meats and convenience
foods under several well-known local brand names. Its customers are retail, the
HoReCa sector, industry and export customers. HKScan is active in nine
countries and has some 10,000 employees. Annual net sales are 2.3 billion euro. 



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