Cooperation negotiations concluded at Raute

RAUTE CORPORATION INSIDE INFORMATION AUGUST 22, 2019 at 1:15 p.m.

COOPERATION NEGOTIATIONS CONCLUDED AT RAUTE

Negotiations in accordance with the Act on Co-operation within Undertakings, initiated on 8 August 2019, concerning adaptation measures at Raute’s Nastola plant have been concluded. 

Raute's operations will be adapted to the declined order book and the operational and financial situation resulting from that, starting in September and flexibly according to the workload in order to secure undisturbed customer service and competitiveness. 

The amount and timing of lay-offs will be determined according to the development of the order book and workload. The conclusion reached means that temporary lay-offs for a fixed period of at most 90 days may be implemented at Raute's Nastola plant until the market situation becomes better. 

Raute Group's total headcount on 30 June 2019 was 810, of which 549 persons worked in Finland. These cooperation negotiations concerned the hourly workers at the Nastola plant, totally 157 persons.

RAUTE CORPORATION
Tapani Kiiski
President and CEO

FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, mobile phone +358 400 814 148
Mr. Petri Strengell, Group Vice President, Supply Chain, mobile phone +358 40 758 6580

DISTRIBUTION:
Nasdaq Helsinki Ltd, main media, www.raute.com

RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood, LVL (Laminated Veneer Lumber) and sawn timber. Its technology offering covers the entire production process for veneer, plywood and LVL and special measurement equipment for sawn timber. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in the Nastola area of Lahti, Finland. The company’s other production plants are located in Kajaani, Finland, the Vancouver area of Canada, the Shanghai area of China and in Pullman, Washington, USA. Raute’s net sales in 2018 were EUR 181.0 million. The Group’s headcount at the end of 2018 was 772. More information about the company can be found at www.raute.com.