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New logistics Centre to be built for HKScan Baltics near Tallinn

20. February 2020

HKScan has signed a construction agreement with Estonian construction company Astlanda Ehitus to build a logistics centre for HKScan’s Baltic operations in Harjumaa County near Tallinn in Estonia. The constructions will be completed in August 2021. A central logistics centre serving the entire Baltic region will save logistics costs and reduce the environmental impact of logistics.

According to Anne Mere, EVP HKScan’s Business Unit Baltics, the steady growth in sales volumes of both Rakvere and Tallegg meat and food products and the company’s desire to provide its customers with fast and flexible delivery in all Baltic states has led to the decision to move the existing Rakvere and Riga assembly centres into a single central logistics centre. “Centralized logistics will help us to support growth of HKScan in Estonia and in Latvia, and maintain our market leader position in both markets,” added Mere.

“A central logistics centre serving the entire Baltic region will save approximately one million euros annually and reduce the environmental impact of logistics significantly. The main environmental benefit comes from the installation of solar panels built on the top of the centre and the reduction of unnecessary transport by 400,000 kilometres per year,” said Mere.

Tero Hemmilä, CEO of HKScan Corporation, added that a new logistics centre supports not only strategic growth plans but also fulfils the expectations of consumers and the company itself for responsible business. “HKScan has the ambition to move towards carbon neutrality. Several investments in Estonia, both in production and in the logistics centre, help us to move in this direction,” said Hemmilä.

Kaupo Kolsar, Chairman of the Board of Astlanda Ehitus, described that this is also an important project for them, which will enable them to support the growth of Estonia’s leading meat and food company. “We provide HKScan with a turnkey solution. This means that we will self-finance and build the centre based on the project from HKScan and enter into a 10-year rent agreement to operate it by HKScan in Baltics,” said Kolsar.

New Baltics logistics centre will have 9,000 square meters of storage space, which can later be increased. The logistic centre employs 105 people, the employees of current assembly centres in Rakvere and Riga are expected to continue work within the company.

 

FOR FURTHER INFORMATION

Anne Mere, HKScan’s EVP BU Baltics, tel. +372 502 5899

HKScan Corporation is a publicly listed food company with over one hundred years of experience in responsible Nordic food production for customer and consumer needs. HKScan’s sustainable way of operating spans the entire value chain, from farm to consumer. Our nearly 7 000 professionals ensure our promise of high-quality products that taste good. Our home markets cover Finland, Sweden, Denmark and the Baltics. Our diverse product selection includes poultry, pork, beef, and lamb products as well as charcuterie and meals. The company’s strong consumers brands are HK®, Kariniemen®, Via®, Scan®, Pärsons®, Rakvere®, Tallegg® and Rose®. In 2019, HKScan’s net sales were EUR 1.7 billion.