Sector News

Raisio to remodel its UK Cereal & Snack business

December 14, 2015
Food & Drink

Raisio has completed the consultation process started at the beginning of October 2015 regarding the future of its Southall factory in the UK. At the beginning of 2016, part of the Southall production will be transferred to Raisio’s Newport site and part will be outsourced. 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.

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 euros and some seven million euros as arrangement expenses related to the closure of the Southall site.

Source: Raisio plc

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