RAISIO CONCLUDES THE CODETERMINATION TALKS

Report this content
Raisio plc       Stock Exchange Release 17 October 2006 at 9.00 a.m.

RAISIO CONCLUDES THE CODETERMINATION TALKS

The codetermination talks Raisio started early September in Finland have now been
concluded. Margarine production will be adjusted through lay-offs, which have a
labour effect of some 25 men years. As a result of reorganization of the Food
Division and rationalization of group services 24 employees will be made
redundant. Furthermore 7 jobs will be reduced through retirements and other
arrangements and some 10 temporary employments will be ceased.

The finalized codetermination talks are part of Raisio's rationalization program
by which the company aims to be better prepared for the increasing challenges of
the tightening competitive environment, especially on the Finnish food markets.
The personnel reductions and the lay-offs are estimated to result to cost savings
of approximately EUR 5 million on annual basis. A cost provision of EUR 700,000
will be made in the third quarter result of this year.

There are several other projects in force aiming at increased efficiency and
reduced working capital. The capacity expansion in the stanol ester plant in
Finland enables all the European Benecol ingredient deliveries to be handled from
the Raisio plant, which reduces production in the US plant. This results to
reduction of 15 employees in the US plant. Furthermore Raisio has decided to
close down the Viikki research centre. Research and development will be
centralized into the new Raisio-based R&D centre completed earlier this year.
This operating model will better serve the needs of the various businesses and
also bring along some cost savings.

After the reductions the number of employees in Raisio Group is some 1,300.

RAISIO PLC

Taru Narvanmaa
EVP, Communications and IR
tel. +358 2 443 2240 or +358 50 590 9398

Further information
Rabbe Klemets, CEO, tel. +358 2 443 2220 or +358 400 821 614
Denis Mattsson, President, Food Division,tel. +358 2 443 2530
or +358 400 432 877



Distribution:
Helsinki Stock Exchange
Main media
www.raisio.com

Subscribe