Oriola-KD to begin co-operation negotiations in Finland to improve operating efficiency

Oriola-KD Corporation Stock Exchange Release 20 January 2015 at 12.30 p.m.

Oriola-KD to begin co-operation negotiations in Finland to improve operating efficiency

Oriola-KD will begin co-operation negotiations in Finland on 28 January 2015. The negotiations concern the planned efficiency programme of Oriola-KD Corporation and Oriola Oy and possible impacts on personnel due to the restructuring of operations in accordance with the planned programme as well as production-related reasons. Approximately 500 people fall within the scope of the negotiations. According to the company's preliminary estimate, the negotiations could result in a need to reduce the workforce by 50-65 people in Finland, which would be equivalent to an annual cost saving of approximately 2 million euros.

As a consequence of the sale of its Russian businesses, Oriola-KD's net sales decreased by about 40 per cent, and the number of the company's personnel was reduced by half. In the planning for Oriola-KD's Group Administration support function, it will be necessary to find solutions for reorganising these functions in line with the requirements and needs of the company's business operations.

The objective in the planned reorganisation of the Finnish business operations is to respond to the toughened competitive environment, to improve the efficiency of operations and to enhance the service provided to customers.

Oriola-KD's continuing business operations employed approximately 2,300 people at the end of September 2014, of whom 22 per cent worked in Finland and the Baltic countries and 78 per cent in the Swedish operations.

Oriola-KD Corporation

Eero Hautaniemi
President and CEO

Further information:

Eero Hautaniemi
President and CEO
Oriola-KD Corporation
tel. +358 10 429 2109
e-mail: eero.hautaniemi@oriola-kd.com

Kimmo Virtanen
Managing Director
Oriola Oy
tel. +358 10 429 2069
e-mail: kimmo.virtanen@oriola.fi

Distribution:
NASDAQ OMX Helsinki Ltd
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Released by:
Oriola-KD Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo, Finland
www.oriola-kd.com