HK’s broiler delivery reliability was pretty poor at times during winter 2017-2018. Additionally, they produce broilers sold under Kesko’s Menu brand name for Horeca, and the delivery of these was also uncertain at times. I then shifted my purchases to Atria, even though the price was higher, because the product arrived as agreed.
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Yes, and Atria’s possible major investment in poultry production is only in 2024. So before that, the markets need to be taken over. At the same time, an export permit for poultry to China is expected. So Rauma must have efficiency. I could say that Rauma is producing well now. Perhaps the previous leaders did not give such great importance to exports to China, because the company’s existence was hanging by a thread.
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Bought more today at a rate of 2.30. Now pulling a few slips.
HKScan Corporation, Media Release, 22 January 2020 at 8:30 a.m.
HKScan is investing approximately six million euros in a new slaughtering process at its Rauma poultry unit. The investment will significantly improve raw material yield, productivity and operational reliability, and ensure the capacity required for strong demand growth. The investment will be implemented in phases in the latter half of 2020.
HKScan’s CEO Tero Hemmilä: “We are renewing the entire upstream production process of the Rauma poultry unit because the slaughter line commissioned in 2017 does not meet the level of requirements set by the Group’s current management. The investment will increase the processing capacity of the slaughtering process by approximately 20 percent and raw material yield by approximately 10 percent. The investment also guarantees a significant reduction in the consumption of utilities such as water and district heating. The investment will also enable us to better respond to the strong and continuous growth in demand for poultry products in the coming years.”
With the investment, the current slaughter line will be decommissioned. For this reason, HKScan will write down the residual value of the current line in the balance sheet by 6.9 million euros in the fourth quarter of 2019. The write-down has no cash flow impact.
The new slaughter line will be installed in phases at the end of 2020 in a way that does not jeopardize the unit’s delivery reliability, which was stabilized in 2019. The investment will improve the operational reliability and productivity of the Rauma unit and significantly increase production capacity from the current level. The demand and sales of HKScan’s poultry products in Finland have grown faster and stronger than anticipated. The investment now being implemented will enable business growth more reliably in the coming years. In particular, the demand and sales of Kariniemen® poultry products are expected to grow faster than the market.
HKScan’s strong improvement in poultry business profitability in Finland has been one of the key drivers for the Group’s profitability improvement in 2019. A significant improvement in delivery reliability restored HKScan to market leadership in the poultry category in Finland in the second half of 2019.
HKScan Corporation
Tero Hemmilä
CEO
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The demand and sales of HKScan’s poultry products in Finland have grown faster and stronger than anticipated.
If the results are currently coming from there, there’s nothing else to say about the ability of the results. Investment in growth.
“It’s sensible to replace the machines right away. The impact on results will be quick, and the payback period is short,” says Jari Leija, Director of HKScan Finland.
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Here we have already skied almost as much as Atria, which got a negative. Added a slice @2.24
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I had a worm 2.25
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With an ice pick, an attempt is made @2,245
I also took a small slice with an “average down” mentality, even though we hadn’t come down much. I didn’t quite hit bottom.
I wonder if the SARS epidemic affects this? Probably not.
Food is always needed. Given the situation in China, they might end up buying even more food from abroad than planned. This, in turn, benefits pure Finnish food. Perhaps HK knows that demand will grow. Hopefully, HK/Atria will get an export permit for chicken.
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Another interesting angle: how will the amount of agricultural products in the CHINA-USA deal affect HK’s business? Are meats even included in agricultural products? 
However - surely that stuff will get absorbed into [China]. The question is probably about who has the best logistics and can export the most, not about demand running out. Of course, this trade deal gives a potential political blessing to the matter, and that never hurts.
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Are Nordea’s sales over yet?
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Hardly the cheapest planes from Poland this time, are they?
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HK mentioned,
It has been commented here that exports to China continue normally
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Positive news.
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Great news and it further supports my own confidence in the matter! Clear potential in the stock, which is why I’m strongly HOLDing.
Just one more week to wait for the financial statement from the Christmas season.
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Now it could be worth more than gold if we finally get a sales permit to China.
Do they generate more revenue than domestic sales?