Raute to initiate change negotiations for temporary lay-offs
RAUTE CORPORATION PRESS RELEASE MARCH 1, 2023 at 09:00 a.m.
RAUTE TO INITIATE CHANGE NEGOTIATIONS FOR TEMPORARY LAY-OFFS
Raute Corporation has initiated change negotiations in accordance with the Act on Co-operation within Undertakings concerning measures to adapt the resourcing of its production plants in Finland to the variations in workload.
The adaptation measures concern the hourly workers at the production plants in Finland, totally 147 persons. Raute estimates that the initiated negotiations concern temporary lay-offs of at most 90 days. The company estimates that there is no need to terminate employment contracts.
Raute has an on-going development program that aims to improve competitiveness and profitability of the company. The program was announced in June 2022. Overall, the program is expected to reduce the annual cost base by some EUR 4‒5 million and improve margins. The negotiations for temporary lay-offs that have started now are part of the overall competitiveness and profitability improvement program.
The initiated negotiations do not indicate any change in the previously disclosed guidance statement for 2023. On February 14 the company announced that Raute’s 2023 net sales are expected to be above EUR 130 million and Comparable EBITDA margin to be above 4%.
RAUTE CORPORATION
Mika Saariaho
President and CEO
FURTHER INFORMATION:
Mr. Mika Saariaho, President and CEO, mobile phone +358 40 154 9393
DISTRIBUTION:
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 Lahti, Finland. The company’s other production plants are located in Kajaani, Finland, the Vancouver area of Canada, in Changzhou, China and in Pullman, Washington, USA. Raute’s net sales in 2022 were EUR 158.3 million. The Group’s headcount at the end of 2022 was 778. More information about the company can be found at www.raute.com.