Raute to initiate cooperation negotiations
RAUTE CORPORATION INSIDE INFORMATION JUNE 15, 2020 at 4:00 p.m.
RAUTE TO INITIATE COOPERATION NEGOTIATIONS
Raute Corporation has initiated negotiations in accordance with the Act on Co-operation within Undertakings concerning measures to adapt its operations in Finland, i.e. in Nastola, Lahti, and Kajaani. The purpose of the negotiations is to adapt operations to the financial and production-related situation resulting from the declined order book and actions preventing work to be done due to the operational restrictions (e.g. in travelling) because of the coronavirus pandemic.
The adaptation measures concern all salaried and senior salaried employees of Raute Finland and there are totally 333 employees within the cooperation negotiations. Raute estimates that the initiated negotiations concern temporary layoffs for at most 90 days, and the temporary layoffs will concern about half of the employees within these negotiations. The company estimates that there is no need to terminate employment contracts.
Adaptation measures will be carried out also in Raute’s units outside Finland according to the local practice and order book.
The initiated negotiations do not indicate any change in the previously disclosed outlook for 2020. Raute’s net sales for 2020 are expected to decrease compared to 2019 and operating profit is expected to weaken clearly year-on-year.
RAUTE CORPORATION
Tapani Kiiski
President and CEO
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, mobile phone +358 400 814 148
Ms. Tarja Järvinen, Group Vice President, Finance, CFO, mobile phone +358 40 658 3562
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 2019 were EUR 151.3 million. The Group’s headcount at the end of 2019 was 778. More information about the company can be found at www.raute.com.