Raisio has completed the consultation process started at the beginning of October 2015 regarding the future of its Southall factory in the UK as it looks to improve cost efficiency and competitiveness in the UK cereal and snack business.
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, according to the company, improve cost efficiency and competitiveness in the UK cereal and snack business. It will also enable Raisio to build a more consumer-oriented product range.Raisio will centralise all its snack bar production at the Newport site specialising in snack products. This, the company said, will further improve the site’s production efficiency and enable a wider range of products that meet consumer needs. Furthermore, Raisio believes that outsourcing of the cereal production will enable it to build a diverse product range focusing on healthier cereal products and to ensure cost efficiency.Production at the Southall site will cease by the end of Q1 in 2016, resulting in the loss of 99 jobs. Raisio says it 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 and snack business,” said Tomi Järvenpää, Vice President of Raisio’s Snack & Cereal unit. “The new operating model improves Raisio’s competitiveness in both local and international markets." In the last quarter of 2015, Raisio says it wrote down some €4.5 million and some €7 million as arrangement expenses related to the closure of the Southall site.