RAUTE CORPORATION'S EMPLOYEE NEGOTIATIONS CONCLUDED
RAUTE CORPORATION STOCK EXCHANGE RELEASE 19 NOVEMBER 2010 at 11:45 a.m. RAUTE CORPORATION'S EMPLOYEE NEGOTIATIONS CONCLUDED Negotiations at Raute Corporation in accordance with the Act on Co-operation within Undertakings concerning temporary lay-offs and termination of employments of salaried and senior salaried employees of Raute's Finnish units have been concluded. The negotiations, which were initiated on 8 October 2010, concerned measures to adapt the operations to the continuing weak demand and the fluctuation of the order book, and to improve the profitability. As a result of the negotiations it was agreed that the company will terminate the employment contracts of a total of 18 salaried and senior salaried employees in its units in Nastola and Kajaani in Finland instead of 25 employees given in the employer's proposal. It was further agreed that a part of the targeted cost savings related to the required employee reduction will be implemented through internal changes in duties. In addition, it was agreed that the adaptation measures of the salaried and senior salaried employees of Raute's Finnish units will be continued as temporary lay-offs of a fixed duration according to the financial situation and the workload. The temporary lay-offs of the hourly workers in the Nastola production plant will be continued according to the previously concluded adaptation measure results. The concluded negotiation results will generate to Raute a cost of around EUR 0.5 million for the last quarter 2010. The adaptation measures will not have an impact on Raute's net sales and financial performance forecasts for 2010. Net sales for the entire year 2010 will increase and the operating profit will be positive. At the end of September, Raute Group employed altogether 511 persons, of which the Finnish units accounted for 383 persons. RAUTE CORPORATION Tapani Kiiski President and CEO FURTHER INFORMATION: Mr. Petri Strengell, Vice President, Technology and Operations, tel. +358 3 829 3510, mobile +358 40 758 6580 Mrs. Anne Aaltonen, Group HR Manager, tel. +358 3 829 3278, mobile +358 40 830 7826 DISTRIBUTION: NASDAQ OMX Helsinki Ltd, main media, www.raute.com RAUTE IN BRIEF: Raute is a technology company serving the wood products industry worldwide. Its most important customers are the plywood and LVL industries. Raute is one of the world's leading suppliers of mill-scale projects to these customer industries. The total service concept also includes technology services, with which Raute supports its customers throughout the entire life cycle of their investments. Raute's head office is located in Nastola, Finland. Its other production plants are in the Vancouver area of Canada, in the Shanghai area of China, and in Kajaani, Finland. Raute's net sales declined significantly due to the difficult market situation in 2009 and equaled EUR 36.6 million. The number of personnel at the end of 2009 was 524. More information on the company can be found at: www.raute.com.