Raisio Group to start statutory cooperation negotiations

Raisio plc, Stock Exchange Release, 8 October 2012, at 1 p.m. Finnish time

RAISIO GROUP TO START STATUTORY COOPERATION NEGOTIATIONS

Raisio Group will start statutory cooperation negotiations concerning mainly its Brands Division’s Finnish operations, Raisioagro’s feed protein business and the Group’s support functions. The negotiations will cover around 230 employees and the maximum personnel reduction need is estimated to be 60 people.

The negotiations concerning all personnel groups will start on Monday 15 October 2012. The process is expected to be completed at the beginning of December. The negotiations concern possible terminations and combinations of functions and duties as well as restructuring of individual tasks.

Raisio’s cooperation negotiations are largely related to the need to improve the declining competitiveness and profitability of the Brands Division’s Finnish operations. In addition, the production capacity will be adjusted to meet the changed operating environment. The objective is to adapt the operations to meet levels of demand. With lighter cost structure and flexibility, it is possible to ensure the company’s long-term competitiveness.

The company is seeking solutions for the low profitability of the feed protein business. Furthermore, the production of the factory crushing rapeseed will be adjusted to meet the market conditions. In rapeseed crushing, the share of Finnish raw material has decreased significantly and the harvest outlook is poor. Profitable operations are not possible with imports of crushable seeds and logistics costs resulting from the sales of rapeseed oil abroad.

“It is unfortunate that Raisio has to start such large-scale cooperation negotiations in its Finnish operations. However, we need to ensure our competitiveness in the changing business environment as well as the profitability of all operations also in the future” says Merja Lumme, Raisio’s Vice President, Human Resources.

RAISIO PLC

Heidi Hirvonen
Communications and IR Manager
tel. +358 50 567 3060