Finnish food group Raisio has announced that it will shut down production at its plant in Oulu
 
In 2006, Raisio Feed and the City of Oulu agreed that Raisio would cut down manufacturing in its feed plant in Toppila. The site will become available for house building in June 2009. The lease contract of the site would have ended in 2016. With their financial result for 2006, Raisio Feed recognised a one-off income item of EUR 1.8 million resulting from the contractual lease transfer of the plot that Raisio’s feed plant in Oulu is currently located on.

Raisio is increasing its feed production capacity in the key milk production area by building a feed plant in Ylivieska. This plant will serve livestock producers mainly north of Kokkola-Iisalmi line. The new 140,000 ton feed plant is planned to be in use by the end of 2008. The value of the investment is approximately EUR 15 million. The plant will employ 10 people and in addition some 20 people indirectly.

The company's decision to close the Oulu operation is part of a larger restructuring effort in order to, in their words, ‘improve performance and rationalise operations.’ Such initiatives are targeted at annual cost savings of €9m, the firm said in November last year. 

“Raisio’s share of Finnish farm feed market is nearly 40%. At the moment company’s feed plants are located in Raisio, Anjalankoski and Oulu. The capacity of Oulu’s plant seems to become insufficient due to the growing demand for industrial feeds thanks to increase in farm sizes. According to the plan, Raisio’s feed production in the key milk production area will be ensured by building a new manufacturing plant, double the size of Oulu’s plant, by the end of 2008,” said Leif Liedes, President of the Feed and Malt division, Raisio Feed.

The red brick mill adjacent to the feed plant in Toppila was built around 1920 by Vaasan Höyrymylly Oy. Rye was the original product, but in 1950s the plant was expanded to produce mill wheat. It was also expanded upwards with one extra storey. In 1979, the red mill got company of a massive feed factory and a set of concrete silos, as the plot was bought by Ra¡sio Oy. The old mill was shut down in 1991 but still today occupy the feed factory.

The construction of flats at the site of the mill was stalled in 2006, due to the adjacent feed factory, which has permission to operate till at least 2016. The presence of feed production prevents conversion of the red mill due to its noise and dust emissions.  With the new announcement by the Raisio group, it appears that soon the construction at this site will resume.

http://www.raisiogroup.com

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