Finland-based food group HKScan is investing €8m ($8.8m) into a convenience-foods factory in the west of the country.
The money will be injected into its developing new ready-to-eat products at the facility in Eura.
HKScan’s investment comes as it is reshaping parts of its domestic business and selling assets outside Finland.
These goods are expected to be launched onto the market in “the first quarter of 2025”, the company said in a statement.
The investment is expected to boost the “added value of its products”, develop “operational efficiency” and meet the growing demand among consumers for convenient and simple cooking, it added.
Products manufactured at the site include prepared pizzas under the HK and Via brands.
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In a statement, Jari Leija, executive vice president of the group’s Finnish business unit, said the investment would “strengthen our market and competitive position in higher value-added products”.
“It will enable us to meet the expectations of our customers,” he added, “especially those in the food service sector, and consumers for ready-to-eat products”.
The move comes at a time when the company is “determined to improve our profitability and build a stronger foundation for the future competitiveness of our business”, Leija said, adding that it had a vision “to “grow into a versatile food company”.
Eura was formerly home to HKScan’s poultry packing operations. Earlier this month, the company announced its plans to streamline those activities to its plants in Rauma and Forssa to cut costs.
The move will help the company save around €1m by the third quarter of 2024, it said.
That same month, the group also announced, via the Danish stock exchange, that it was looking into divesting its business in Denmark.
At the time, the company said in the filing that there was “no certainty” on the outcome of the talks nor the terms of any alleged transaction.
The news came a couple of months after the group said it was planning to hand over its Swedish unit to agri-food giant Lantmännen, which had proposed to pay €60m for the business.
On top of this, Lantmännen also agreed to re-pay an intra-group loan between HKScan Corporation and HKScan Sweden worth approximately €50m.
In the 12 months to December 2023, HKScan booked annual net sales from continuing operations across Finland and Denmark of €1.16bn, a 6% hike on 2022.
Annual EBIT reached €17.4m, an improvement from the €2.6m loss registered over the same period last year.
