Brief: Orion Investigates Possible Outsourcing Of Pharmaceutical Production In Kuopio

Orion Oyj

19/02/2024 11:25

Feb 19 (Reuters) - Orion Oyj  ORNBV.HE :
    * ORION TO INVESTIGATE POSSIBLE OUTSOURCING OF ITS
PHARMACEUTICAL
PRODUCTION IN KUOPIO, FINLAND
    * IS EVALUATING POSSIBLE OUTSOURCING OF ITS PHARMACEUTICAL
PRODUCTION IN KUOPIO, PART OF ITS GLOBAL OPERATIONS FUNCTION, TO
AN ENTITY OUTSIDE FINLAND
    * EVALUATION IS DUE TO LOW COMPETITIVENESS OF PLANT, LOW
CAPACITY
UTILISATION, INCREASING QUALITY REQUIREMENTS IN PHARMACEUTICAL
INDUSTRY, AND HIGH INVESTMENT NEEDS
    * VOLUMES OF PLANT ARE LOW AND DUE TO LACK OF
COMPETITIVENESS,
OUTLOOK FOR GROWTH IS VERY LIMITED
    * PRODUCTS CURRENTLY MANUFACTURED IN KUOPIO WOULD CONTINUE
TO BE
PART OF ORION'S PRODUCT PORTFOLIO ALSO IN FUTURE
    * ESTIMATED TIME SCOPE IS THAT PLANT WOULD CONTINUE TO
OPERATE
UNTIL AT LEAST SUMMER OF 2026
    * BASIS FOR POSSIBLE OUTSOURCING WOULD BE LACK OF
COMPETITIVENESS
OF KUOPIO PLANT AND HIGH INVESTMENT NEEDS OF PLANT
    * COMPANY HAS TODAY ISSUED A NEGOTIATION PROPOSAL IN
ACCORDANCE
WITH CO-OPERATION ACT WITHIN UNDERTAKINGS REGARDING
REORGANISATION OF OPERATIONS AND POSSIBLE PERSONNEL REDUCTIONS
    * OTHER EMPLOYEES WORKING IN KUOPIO PLANT ARE NOT IMPACTED
BY
STATUTORY NEGOTIATIONS
    * STATUTORY NEGOTIATIONS INCLUDE ENTIRE PERSONNEL IN
OPERATIONS
AND FUNCTIONS WHICH SUPPORT PRODUCTION IN KUOPIO PLANT,
ALTOGETHER ABOUT 40 PEOPLE

Source text for Eikon:  ID:nGNE22PnXn 
Further company coverage:  ORNBV.HE 

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