Raisio PLC: to reach decision in cooperation negotiations

Raisio / FI. (rg) Raisio Group’s employee co-operation negotiations launched at the end of January 2018 have been largely completed. At this point, it was decided that a total of 20 employments will be terminated. The terminations will be carried out through retirements, voluntary arrangements and redundancies, and partly through the termination of fixed-term employment contracts.

Raisio’s initial estimate of the reduction need was 30 jobs and it is expected to take place gradually. Once Raisio has completed the negotiations related to the possible divestment of its feed businesses announced at the end of 2018, it will also be possible to close the cooperation negotiations in terms of employments closely related to Raisioagro.

Raisio will direct all resources to support the strategic growth targets of its new Healthy Food Division. The cooperation negotiations were launched to ensure Raisio’s competitiveness and profitability. The negotiations concerned Raisio’s Group Services as well as the new Healthy Food Division’s marketing, product development and support functions. A total of 115 were within the negotiations.

Group starts statutory cooperation negotiations

Raisio / FI. (01.31. / rg) Raisio Group’s structural changes started with the divestment of the confectionery business in December 2017. Furthermore, Raisio announced in its Stock Exchange Releases of 31 January 2018 to consider the divestment of its feed businesses as one strategic alternative and to renew the Group structure. To ensure its competitiveness and profitability, Raisio will start cooperation negotiations concerning 115 employees on 5 February 2018.

Initial estimate of the reduction need is 30 persons. The cooperation negotiations concern the Group services as well as marketing, product development and service functions of the new Healthy Food Division. Raisioagro, the new Healthy Food Division’s mills and Finnish sales as well as the production of plant stanol ester, the Benecol product ingredient, are not within the negotiations.

The negotiations concern possible terminations, combinations and restructuring of functions and duties. The aim is to complete the negotiations during March 2018. At the end of 2017, Raisio’s Finnish operations employed a total of 325 people.

Group to continue structure renewal

Raisio / FI. (01.31. / rg) Finland’s Raisio Group continues to focus on healthy foods according to its strategy. The company divested its confectionery business in December 2017 and is now considering a sale of its feed business as one strategic alternative. Until now, Benecol and Healthy Food businesses have operated as separate organisations and will now be combined into a single Healthy Food Division. During the spring 2018, the company will also initiate measures to simplify the Group’s legal corporate structure.

Pekka Kuusniemi, Raisio Group’s President and CEO says: «To ensure Raisio’s organic growth, we are going to move from a holding-type structure to a model in which all resources are targeted toward supporting the strategic objectives of the Healthy Food Division. Raisio also seeks growth through acquisitions that suit our core business».

In addition to his CEO role, Pekka Kuusniemi will serve as CCO of the Healthy Food Division until a new director is appointed. The new Healthy Food Division is divided into three geographic regions: Northern and Eastern Europe, Western Europe and the rest of the world. The new organisational structure will be put into effect as of 1 February 2018.

Vincent Poujardieu, the Vice President of Benecol business and member of the Group Management Team, will leave Raisio on 31 January 2018.

President and CEO Pekka Kuusniemi, CFO Antti Elevuori, Vice President of HR Merja Lumme, Vice President of Legal Affairs Sari Koivulehto-Mäkitalo, Vice President of Operations Jukka Heinänen and Vice President of Raisioagro Perttu Eerola will continue as Group Management Team members.

Update: cooperation negotiations entirely completed

Raisio / FI. (05.04. / rg) On Friday 04 May 2018, the Raisio Group announced the divestment of its cattle feed business to Lantmännen Agro Oy. With the deal, Raisio has also completed the cooperation negotiations still open in terms of employments closely related to Raisioagro. As a result of the negotiations started in January 2018, a total of 22 employments will be terminated. As an interim decision for the negotiations, the company announced already in March to terminate 20 employments.

After the completion of the cattle feed business deal, Lantmännen Agro Oy will acquire Raisio’s support services. Therefore, the workforce reduction need was low for the negotiations completed today. The workforce reductions resulting from the negotiations are carried out through retirements, voluntary arrangements and redundancies, and partly through the termination of fixed-term employment contracts.

The cooperation negotiations did not concern Raisioagro’s personnel. The 76 employees of the cattle feed business will be transferred to Lantmännen Agro as serving employees when the deal is closed. The fish feed business and its personnel will continue as a solid part of the Raisio Group.