The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Pori Factory (Satakunta)
Pori Distribution Centre (Satakunta)
Tampere Distribution Centre (Pirkanmaa)
Sector
Manufacturing Manufacture Of Food And Beverage Manufacture Of Beverages 11 - Manufacture of beverages
105 jobs Number of planned job losses
Announcement Date
16 August 2006
Employment effect (start)
Foreseen end date
31 December 2006
Description
The main manufacturer of beer and beverages in Finland, the Sinebrychoff company, has concluded personnel negotiations on the reduction of 105 jobs. Of the reductions, 33 will be made through pension arrangements, while 72 people will be made redundant due to reasons of economy and production.
Sinebrychoff started negotiations on the reduction of 140 jobs in August 2006. The focus of the cutbacks was to be at the companys beer factory in Pori as well as at the storehouses which the company plans to close down in Pori and Tampere. The beverages manufacturer calculated that it could save about 12 million euro until 2008 through the reductions in personnel and other arrangements. Sinebrychoff currently employs 1,100 people in Finland.
The company says increasing imports of beverages and tightening markets require higher efficiency and a new operations model better suited to the markets. As part of the rationalisation Sinebrychoff is going to centralise its stocking in the companys Kerava distribution centre and is therefore closing the storehouses in Pori and Tampere. By the beginning of 2007 the distribution centres in Pori and Tampere will be transformed to terminals serving only locally. Sinebrychoff will also stop bottling beer in its Pori factory. Production of the leading beer brand in Finland, Karhu, and other beers will continue in Pori, but for bottling the beer will be shipped to Kerava, where the company also has can filling lines. Sinebrychoffs CEO Mikael Aro explains that the popularity of canned beer has doubled since the environmental protection tax for cans was halved at the beginning of the 2005. The company anticipates that the popularity of canned beer will continue to increase as the environmental protection tax for cans will be abolished at the beginning of 2008.
To demonstrate against the companys decisions the staff at the Pori factory planned to stay away from work for two days after the company had announced the reduction and relocation plans. According to CEO Aro, the company aims to minimise the number of dismissals through pension and working time arrangements. In addition, the company is willing to relocate the personnel from Pori and Tampere to its Kerava site. The head shop steward of the Pori factory, Kari Jakonen, however, assumes that employees interest in relocation plans will be minimal, because their houses and families are in Pori.
Sinebrychoff is the leading manufacturer of beer and beverages in Finland, the annual sales of the company being about 400 million litres. The turnover of the company was 312 million euro in 2005. Sinebrychoff has been owned by the Danish brewery giant Carlsberg Breweries since 1999.
Sources
17 August 2006: Helsingin Sanomat
10 October 2006: Kansan Uutiset
Citation
Eurofound (2006), Sinebrychoff, Relocation in Finland, factsheet number 63929, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63929.
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