Raisio remodels its UK cereal and snack business
14 December 2015 • Author(s): Victoria White
Following a consultation process, Raisio has announced that production at its Southhall factory in the UK will be part transferred to the company’s Newport site.
Other production at the Southhall site will be outsourced. Raisio says the new operational structure will improve cost efficiency and competitiveness in the UK Cereal & Snack business. It will also enable Raisio to build a more consumer-oriented product range.
Raisio will centralise all its snack bar production to the Newport site specialised in snack products. This will further improve the site’s production efficiency and enable a wider range of products that meet consumer needs. Furthermore, outsourcing of the cereal production will enable Raisio to build a diverse product range focusing on healthier cereal products and to ensure cost efficiency.
Remodelling “necessary” for Raisio’s UK Cereal & Snack business
The Southall site production will cease by the end of Q1 in 2016, resulting in termination of 99 employments. Raisio is assessing alternatives regarding the future of its Southall property located near London.
“Remodelling of the business is necessary to ensure future success of the UK Cereal & Snack business. The new operating model improves Raisio’s competitiveness in both local and international markets,” says Tomi Järvenpää, Vice President of Raisio’s Snack & Cereal unit.
In the last quarter of 2015, Raisio records write-downs of some €4.5 million and some €7 million as arrangement expenses related to the closure of the Southall site.
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