Annons
Raute Oyj: Raute initiates change negotiations pursuant to the Act on Co-operation within Undertakings

RAUTE CORPORATION INSIDE INFORMATION AUGUST 23, 2022 at 12:45 p.m.

RAUTE INITIATES CHANGE NEGOTIATIONS PURSUANT TO THE ACT ON CO-OPERATION WITHIN UNDERTAKINGS

Raute Corporation has initiated change negotiations in compliance with the Act on Co-operation within Undertakings concerning the salaried and senior salaried employees in Finland. The objective of the negotiations is to adapt the company's operations to the changed market environment for Raute. As earlier announced, the company is currently winding down its Russian business which constituted a significant share of Raute's order book prior to the Russian military aggression towards Ukraine. In addition, the company's profitability has been negatively impacted by the strong cost inflation increasing the company's cost base.

"We have worked further to identify the needed steps to strengthen our development program and regretfully have to also downscale our workforce to adapt to the current, lower volume of operations. With this announced downscaling we estimate to achieve annual savings of approximately EUR 1.5-2 million. In addition, we have initiated other actions targeting efficiency improvements and cost savings of several millions", says Petri Strengell, Interim CEO of Raute Corporation.

Raute communicated in June that it will strengthen its development program to improve competitiveness and profitability during 2022 and 2023.

The change negotiations pursuant to the Act on Co-operation within Undertakings will begin on August 23, 2022 and are estimated to last six weeks. The employer's proposal for adjustment measures includes possible changes in terms of employment and a maximum of 30 people in total regarding dismissals.

The negotiations concern altogether 435 salaried and senior salaried employees in Finland. At the end of June, Raute Group employed altogether 845 persons, of which the Finnish employees accounted for 582 persons.

RAUTE CORPORATION

Petri Strengell

Interim President and CEO

FURTHER INFORMATION:

Mr. Petri Strengell, Interim President and CEO, tel. +358 40 758 6580
Ms. Minna Yrjönmäki, Interim CFO, tel. +358 40 570 2067

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 Lahti, Finland. The company's other production plants are located in Kajaani, Finland, the Vancouver area of Canada, Changzhou, China and in Pullman, Washington, USA. Raute's net sales in 2021 were EUR 142.2 million. The Group's headcount at the end of 2021 was 802. More information about the company can be found at www.raute.com.

Source: Cision
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