Iisalmi, 2014-11-17 08:00 CET (GLOBE NEWSWIRE) -- OLVI PLC STOCK EXCHANGE RELEASE 17 NOV 2014 at 9:00 am
OLVI PLC TO REORGANISE ITS OPERATIONS IN FINLAND AND INITIATE STATUTORY CO-OPERATION NEGOTIATIONS RELATED TO THE CHANGES
Olvi Group’s sales volume and net sales have developed favourably during the operating year, and overall profitability has remained good.
In spite of the Group’s good overall standing, the business environment in Finland has lately seen substantial changes, due to which profitability in Finland has weakened. The most remarkable changes have been weakened consumer purchasing power, a change in purchasing behaviour, as well as clearly intensified price competition in the industry. Furthermore, repeated excise tax hikes, the share of tourist imports becoming substantial, as well as increased restrictions on the trade and marketing of alcoholic products, have made it more difficult to succeed in the Finnish market.
Olvi plc will initiate reorganisation of its operations in Finland, with the aim of responding to changes in the operating environment and ensuring competitive ability in the long term.
In connection with the reorganisation, statutory co-operation negotiations between the employer’s and employees’ representatives will be initiated across Olvi plc’s Finnish operations. The scope of the negotiations includes the entire personnel in Finland, and according to current estimates, the implementation of potential measures arising from them may lead to reductions of a maximum of 35 people. From January to September 2014, Olvi plc employed 379 people in Finland on average.
Lasse Aho
Managing Director
Phone +358 290 00 1050 or +358 400 203 600
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi