HKScan invests €8m to gain ‘competitive edge’ in Estonia

By Oscar Rousseau

- Last updated on GMT

 HKScan is to expand its Estonian site
HKScan is to expand its Estonian site

Related tags Estonia Beef Packaging equipment & materials Poultry

Nordic meat processor HKScan will expand its factory in Rakvere, Estonia, to make room for extra cooking and packaging lines.

Its €8m (US$9.4m) investment will modernise the plant’s frying facility, as the company plans to make more meatballs, chicken nuggets and cutlets.

Modernising the plant in northern Estonia should make it more environmentally-friendly too. New cooking lines will reduce energy consumption by 5%, and the carbon footprint could be trimmed by switching from electricity to gas.

“The market for fried products and minced meat-based, ready-to-eat foods, such as meatballs, nuggets and cutlets, is growing fast,”​ said Anne Mere, vice-president of HKScan’s Baltic market.

“We want to further develop this attractive category and thereby secure HKScan’s competitive edge within this segment. Our upcoming investment in state-of-the-art technologies will allow us to launch innovative new products and packaging solutions. At the same time, it will boost our productivity, increase our capacity, and allow us to expand our export volumes in neighbouring markets and even further away.”

After two ex-HKScan executives were detained by Estonian prosecutors on charges of “money laundering” and “harmful transactions” in November 2017, the investment should come as welcome news to staff.

Jari Latvanen, CEO of HKScan, said the investment reaffirmed the company’s commitment to Eastern Europe, describing Estonia as an “important market”​.

“Investment in our Rakvere unit demonstrates our ambition to strengthen our market leadership in Estonia and across the Baltics, which requires constant improvement of our local farms and production facilities, as well as modernisation of our ways of working.”

Construction work for the factory expansion should get underway in May 2018. It is unclear if any jobs would be created because of the investment.

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