Raisio Announces Further Cutbacks

13/08/07 Raisio has announced further streamlining and clarifying of its business operations in order to improve profitability. The measures carried out to date will now be followed by a reorganisation of the Food and Ingredients Divisions. There is also need of enhancement in the group service functions, the Finnish company said in a statement.

Raisio will speed up the process to improve profitability. The Food Division’s operating result in January–June continued to be in the red, while the turnover of the Ingredients Division didn’t grow. The Group will also make its cost structure lighter.

Owing to financial and production reasons, Raisio will begin codetermination talks in the Food and Ingredients Divisions and group service functions. The talks will cover some 300 employees, the need for permanent job cuts being approximately 30. The aim of the group’s cost cuts is to achieve considerable savings in 2008. In addition to the latest codetermination talks, the previously initiated talks at the Nokia mill, concerning around 70 employees, may lead to the mill being closed down.

Last week, Raisio announced that it will simplify its organization, with the Food Division’s country managers reportinh to CEO Matti Rihko, similar to the Ingredients Division. With this change Raisio will enhance the steering and cost-effectiveness of businesses.

Denis Mattsson, President of the Food Division, will leave Raisio, at his own request, in 2007.