Located in Rakvere and announced at the end of 2017, the expansion will include a modernisation of its meals production lines, the introduction of new cooking and packaging lines and an update to the entire site. Energy upgrades are expected to reduce the plant’s consumption by 5%. The total cost of the project is €8m, with completion planned for the first half of 2019.
HKScan said it hoped the increased productivity and capacity generated through the expansion would boost meals sales in both domestic and export markets.
“Construction is in full swing and the modernised facilities will be operational during the first half of next year,” said Anne Mere, EVP market area Baltics. “We are investing in the latest cooking and packaging technology to enable the launch of new ready-to-eat products. We’re also working on innovative, eco-friendly packaging solutions, which are attracting growing interest among consumers. The Rakvere plant’s products will be sold not only on the Baltic market, but also throughout HKScan’s home markets. We’re also committed to increasing exports from Estonia.”
The business added that it hoped to establish a strong global footprint in the meals segment, which it said was growing 10% year-on-year in Europe, due to changing lifestyles and dietary preferences.
“Lifestyles and dietary habits are changing rapidly on all our home markets,” said Heli Arantola, EVP categories & concepts. “Already, half the Finnish population is eating smaller meals outside traditional mealtimes. Many segments of the meals market are growing as rapidly as 15% a year in value [Nielsen]. We are tapping directly into this growth trend.
“There are many synchronised trends driving this growth on our home markets: urbanisation, the rising percentage of single-member households, and generally increased consumer purchasing power,” she added. “Seeking joy of success in cooking is also a lifestyle trend, coupled with health consciousness, as well as an increased desire for personal time management and for weekday variation. The rising popularity of travel is meanwhile spurring demand for more ethnic flavours.”