Published on 10.01.2022 at 11.30
Terrafame pursues annual savings of EUR 10 million and begins change negotiations in accordance with the Finnish Co-operation Act
MEDIA RELEASE In 2021, Terrafame took a significant step towards expanding its business to battery chemicals production. Production ramp up at the new battery chemicals plant started in June, and Terrafame delivered the first batches of products to customers in late 2021.
Efficiency and profitability of operations have been the most important goals of Terrafame ever since the company was founded. The company follows a continuous improvement model and is actively seeking ways to improve its profitability.
The battery chemicals plant project of the company as well as the launch of the battery chemicals business on a larger scale have been delayed from the original schedule due to the coronavirus pandemic, among other things.
Terrafame has initiated a cost savings programme, aiming for EUR 10 million in annual savings in total. The goal of the savings programme is to improve the international competitiveness and profitability of the company.
As part of the cost savings programme, Terrafame has on 10 January 2022 issued an invitation to change negotiations on production-related and financial grounds in accordance with the Finnish Co-operation Act concerning all personnel groups, excluding the personnel of the battery chemicals plant. The production ramp up of the battery chemicals plant will continue according to the business plan.
“In 2021, we concluded a significant investment and launched the new battery chemicals plant. The plant serves the globally growing electric mobility market, which constantly needs more responsible battery materials. Terrafame is on a path towards new business, but all of our operations must be efficient and profitable even during business expansion. To ensure financially sustainable business in the future, it is now necessary to take the needed cost saving measures,” says Joni Lukkaroinen, CEO of Terrafame.
Terrafame has over 800 permanent employees, and the negotiations affect approximately 680 manual employees, clerical employees and senior clerical employees in total. According to the initial estimate of the company, the personnel reduction need would be a maximum of 75 person-years in total.
The aim of the co-operation negotiations between the company and the staff is to find a solution for adjusting staff resources to better meet the needs of the company. The negotiations will begin on 17 January 2022 and are estimated to last until at least late February 2022 in accordance with the legislation and collective agreements.
Terrafame will announce the outcome of the negotiations after they end.
Attachments and links:
Additional information: Joni Lukkaroinen, CEO, Terrafame Ltd, tel. +358 20 713 0890, joni.lukkaroinen[at]terrafame.fi