RAUTE CORPORATION INSIDE INFORMATION AUGUST 8, 2019 at 11:15 a.m.
RAUTE TO INITIATE COOPERATION NEGOTIATIONS
Raute Corporation has initiated negotiations in accordance with the Act on Co-operation within Undertakings concerning measures to adapt the operations of its Nastola plant to the declined order book and the production-related and financial situation resulting from that. Raute has on August 7, 2019 informed that the company received a binding order for the machinery and equipment engineering of the production process for a plywood mill and estimated that the ordered engineering work will result in an actual order for the production machinery within next few months. In consequence of the received engineering contract there is no need for adaptation measures in Raute’s engineering functions. However, the predicted machinery order will not be early enough to fulfill Nastola plant’s whole capacity.
The adaptation measures concern the hourly workers at the Nastola plant and there are totally 157 persons within the cooperation negotiations. Raute estimates that the initiated negotiations concern temporary lay-offs of at most 90 days. The average number of personnel to be temporarily laid off is estimated to be approximately 30. The company estimates that there is no need to terminate employment contracts.
The initiated negotiations do not indicate any change in the previously disclosed outlook for 2019. Raute’s net sales will decrease and operating profit will weaken in 2019 compared to 2018.
RAUTE CORPORATION
Tapani Kiiski
President and CEO
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, mobile phone +358 400 814 148
Mr. Petri Strengell, Group Vice President, Supply Chain, mobile phone +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 the Nastola area of Lahti, Finland. The company’s other production plants are located in Kajaani, Finland, the Vancouver area of Canada, the Shanghai area of China and in Pullman, Washington, USA. Raute’s net sales in 2018 were EUR 181.0 million. The Group’s headcount at the end of 2018 was 772. More information about the company can be found at www.raute.com.