Atria to restructure operations in Finland

31.3.2008 10:00
Atria will launch an extensive restructuring programme in Finland. The measures 
are expected to generate annual cost savings of approximately  €4 million. At   
the same time, statutory employer-employee negotiations will be initiated       
regarding the restructuring of operations at Atria's Forssa production plant,   
Liha-Pouttu Oy's industrial operations and procurement, and A-Farmers Ltd's and 
A-Rehu Oy's operations. In the above-mentioned operations the negotiations      
concern the reduction of about 230 employees in total. The purpose of the       
restructurings is to improve cost and production efficiency.                    

The preliminary plan is to transfer the logistics operations and meat products  
manufacturing of the Forssa production plant to Nurmo and to begin looking into 
outsourcing certain operations. In meal production in Forssa, investments will  
be made in production automation. The employer-employee negotiations will affect
the entire personnel of the Forssa production plant. The number of employees is 
estimated to be reduced from the current 173 to around 80.                      

In 2007, Atria acquired Liha-Pouttu Oy's slaughtering and cutting operations as 
well as its meat procurement operations. Atria has been operating in rented     
premises owned by Pouttu Oy. As part of the restructuring programme, Atria is   
planning to transfer bovine slaughtering and cutting from Kannus to its         
Kauhajoki and Kuopio production plants. Pig slaughtering and cutting would be   
transferred to Atria's Nurmo plant. In addition, Liha-Pouttu Oy's meat          
procurement operations and A-Farmers Ltd's operations will be merged. The       
employer-employee negotiations will affect the entire personnel of Liha-Pouttu  
Oy, A-Farmers Ltd and A-Rehu Oy. In the above-mentioned operations, the number  
of employees is estimated to be reduced by some 140 persons. The utilization    
rate of the operational capacity in the Nurmo production plant will be          
increased, which is why the restructuring measures do not include significant   

As a result of possible measures, about 60 new jobs will be created in Atria    
Finland's other production plants. The net reduction in personnel is            
approximately 170. The employees affected by the negotiations will be offered a 
chance to transfer to Atria's other production plants in Finland.               

For more information, please contact Mr Juha Gröhn, Managing Director of Atria  
Finland Ltd, tel. +358 400 684 224.                                             

ATRIA GROUP PLC                                                                 

Matti Tikkakoski                                                                
President and CEO                                                               

Helsinki Stock Exchange                                                         
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