Change negotiations pursuant to the Act on Co-operation within Undertakings concluded at Raute

RAUTE CORPORATION INSIDE INFORMATION OCTOBER 7, 2022 at 1:00 p.m.


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

Negotiations in compliance with the Act on Co-operation within Undertakings, initiated on 23 August 2022, concerning adaptation measures have been concluded at Raute Corporation. The change negotiations concerned Raute's salaried and senior salaried employees in Finland. The company’s operations will be adapted to the changed market environment.

 

As a result of the negotiations, it was agreed that the company would terminate the employment contracts of a maximum of 25 salaried and senior salaried employees in its Finnish units instead of a maximum of 30 employees in the negotiation proposal. It was further agreed that a part of the targeted cost savings related to the need to reduce employees will be implemented by transferring a maximum of 7 people to another company as a result of a business transfer.

 

In addition to the redundancies based on the negotiations, the number of employees in the company will decrease by 18 persons by the end of the year due to the termination of fixed-term employment contracts, retirements, and resignations during the negotiations.

 

The concluded negotiation result will generate annual savings of approximately EUR 1.5−2 million. In addition, Raute has initiated other actions targeting efficiency improvements and cost savings of several millions. Raute communicated in June that it will strengthen its development program to improve competitiveness and profitability during 2022 and 2023.

 

The concluded negotiations concerned 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

Mika Saariaho
President and CEO

 

FURTHER INFORMATION:

Mr. Mika Saariaho, President and CEO, tel. +358 40 154 9393
Mr. Petri Strengell, Executive Vice President, COO, tel. +358 40 758 6580

 

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 area in 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.