GROWTH THROUGH CONSUMER-DRIVEN BRANDED PRODUCTS AND EXPORTS
HKScan actively seeks profitable growth and we strive to continually push our business in a more consumer-centric direction. We want to continually improve our ability to meet consumer needs and expectations, which entails early-stage insight into consumer values, attitudes and lifestyle trends as a basis for innovative product development. To succeed, we continually upgrade our product categories and concepts. We also invest a growing amount of resources into more dynamic innovation, brand marketing and open communications. We pay attention to internal collaboration to ensure that every team is fully committed to our mission of making daily life tastier and more sustainable.
We are in the process of making strategic investments in growing product categories, such as chicken and bacon. HKScan is currently building a wholly new production facility in Finland specializing in poultry products, which is scheduled for completion at the end of 2017. We are also expanding our existing bacon plant in Swinoujscie, Poland, which is expected to be completed in 2018. These projects will enable us to develop wholly new products in a high value-add category as well as improve our cost efficiency.
HKScan recognizes potential for growth on export markets and is committed to develop its exports in a more demand-driven direction. The Group officially launched business in Asia by opening a sales office in Hong Kong early in 2016.
The circular economy is another area offering interesting growth potential for HKScan. Our Biotech business has developed commercially viable and eco-efficient alternatives for the utilization of meat industry side streams in various applications.
HKScan recognizes the inherent challenges in our operating environment and their potential impacts on our strategy implementation. Our short-term growth prospects could potentially be affected by economic and political uncertainty, export barriers and changing consumer values. We are aware of the risks affecting our business and we strive to actively minimize the impact of said risks. We also strive to leverage maximum gain from our competitive strengths.
We attained one of the key targets of our previous strategy period by successfully having solidified our capital structure. The Group’s balance sheet is currently strong, offering a solid foundation for our future growth. Other key strengths supporting our strategy include our well-known brands, our market leadership on all our home markets, our superior professional meat expertise and the synergies offered by our geographical location.
In the wake of internal restructuring completed over the past few years, HKScan is today a more unified company, which was another key goal of our previous strategy period. Going forward, we will continue upgrading our operational efficiency and harmonizing our operational footprint. HKScan has divested a number of its smaller, noncore operations, which has streamlined our corporate structure and enabled us to focus more resources on our core mission.
The growth and evolution of our business is supported by HKScan’s innate strategic strengths, our active efforts to improve our profitability, as well as numerous market drivers on the market.