The agreement will see Saarioinen’s meat procurement, slaughtering and butchery taken over by Atria. If the contract goes forward as planned, Atria will become responsible for about half of the nation’s slaughterhouse related services, the other share chiefly being held by rivals HK and Snellman.
Effect on employees not fully known
The plan seeks to increase cost-effectiveness for Atria as well as easing the process of meat procurement, slaughtering and butchery operations. Saarioinen, in turn, hopes to secure a more competitive long-term supply of raw materials, with the aim of freeing up resources for processing.
Saarioinen employs nearly 2,000 workers. Four hundred will move to join Atria's existing workforce. Atria's CEO, Juha Gröhn, says that personnel arrangements are not known at this stage.
“Our assumption is that factories have not been bought to be shut or wound down. Production will continue as at present and we will apply our own expertise towards more efficient production and operations,” says Gröhn.
Broiler production expected to boom
The only brand that Atria will buy from Saarioinen is their Jyväbroileri or grain chicken range, meaning that the trademark will move under Atria’s ownership. It has risen to pole position on the market, according to Gröhn.
“It's the future of our brand, and it was one of the terms related to the deal arising in the first place. We see that there is still room for growth in chicken consumption,” Gröhn adds.
According to him, the Nurmo unit is experiencing constraints on production and the deal will lead to increased capacity for broiler production.
Atria's net sales are expected to grow by about 70 million during the year.
Provided it receives the rubber stamp from the Competition and Consumer Authority, the transaction is expected to be finalised by the end of the first quarter 2014.