Finland-based food company Raisio is in the process of streamlining its UK cereal and snack business in order to focus on manufacturing more consumer-oriented product range.In this regard, the company has completed consultation process regarding its Southall factory in the UK. Raisio had begun the consultation process at the beginning of October 2015. Beginning 2016, part of the Southall production is slated to be shifted to Raisio's Newport facility, while the rest of the production will be outsourced.
Raisio expects the new operational structure to help augment the competitiveness as well as aid in cost-saving efforts of the UK's cereal and snack business. The new plan is also expected to aid the company in developing a more consumer-oriented product range.
The food company intends to consolidate its snack bar production, moving it to the Newport site which specialises in snack products. The shift in the production to the Newport site is intended to enhance the site's production efficiency and meet the demands of producing a wide of products that meet consumer needs.
The outsourcing of cereal production is intended to provide Raisio to focus on building a diverse product range while focusing on healthier products, while taking cost effectiveness into account.
Production at the Southall factory is slated to discontinue by the end of the first quarter of 2016. The move will result in 99 lay-offs. Raisio is yet to determine the future of Southall factory, which is located near London.
Raisio Snack & Cereal unit vice president Tomi Järvenpää said: "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."
Last month, the company had hinted on embarking upon a restructure plan to streamline its UK business. Tomi Järvenpää had said last month that the company has made several changes to the present operating model of the business in order to boost profitability at the Southall facility and speed up the sales of cereals.
