RAISIO INITIATES MANDATORY CODETERMINATION TALKS IN ORDER TO ADAPT VEGETABLE OIL PRODUCTION TO THE MARKET SITUATION
Raisio plc Press release 9 March 2009
RAISIO INITIATES MANDATORY CODETERMINATION TALKS IN ORDER TO ADAPT VEGETABLE OIL
PRODUCTION TO THE MARKET SITUATION
For reasons of production and the economy, Raisio is initiating mandatory
codetermination talks in order to adapt vegetable oil production to the market
situation. The effects of the economic crisis can be seen in the oil milling
business as a weakening of demand for rapeseed oil and its resultant a weakening
in profitability. Raisio is initiating the talks with the aim of laying off the
entire staff at its oil milling plant for a maximum of 90 days. The talks
concern 31 people.
The indirect effects of the global financial crisis can be seen also as a fall
in vegetable oil price and a weakening of export possibilities. One significant
reason is the reduction in the manufacture of biodiesel as a result of the low
crude oil price and the economic downturn. The price of vegetable oil in global
markets has decreased by almost one half during the past six months. The
weakening in demand can be seen as a bloating of stocks and a weakening in
profitability. The profitability of the Finnish oil milling industry is also
being weakened by the scant availability of domestic raw materials and the
necessity of resorting to the use of imported seed.
Of the products at its oil milling plant, Raisio is utilising meals in its feed
production, but only one quarter of the oil is being used as a raw material in
the company's own food chain production. Most of the oil being manufactured is
being sold on international markets.
Adapting vegetable oil production to the market situation is Raisio's way of
controlling the pressures on the profitability of feed raw material. The company
is ensuring that it maintains its profitability and is reacting to changes in
demand by adapting its operations.
RAISIO PLC
Heidi Hirvonen
Communications Manager
tel. +358 50 567 3060
Further information:
Leif Liedes, Vice President, Feed & Malt Division, Raisio plc, tel. +358 50 608
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