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Itella to renew its logistics services in Scandinavia

21.10.2014

ITELLA CORPORATION, STOCK EXCHANGE RELEASE, OCTOBER 21, 2014 AT 15:00

Itella will renew its logistics services in Scandinavia. In the future, Itella will concentrate on road transport between its countries of operation. In this field, Itella already has a firm foothold and the possibility to increase its market share. Itella's aim is also to develop its offering in road transport in selected market areas in Europe.

As part of the renewal, Itella plans to give up air and sea freight as well as its service warehouses in Sweden, Norway and Denmark. Additionally, according to the plans, the internal distribution logistics in the countries is to be outsourced.

The renewal will also initiate cooperation negotiations concerning a total of 300 persons in Sweden, Norway and Denmark. The need for personnel reductions will be defined in the negotiations concerning the operations, and the country-specific cooperation negotiations.

Itella expanded in the Nordic Region in 2005 as part of its internationalization strategy in logistics. The decline of the economy and intense competition have, however, weakened the profitability of logistics operations in the region since the financial crisis began. In accordance with the new strategy published in 2013, Itella is focusing its operations on Finland, Russia and the surrounding areas.  Additionally, Itella's market share of the Scandinavian operations to undergo restructuring has been small.

- The profitability of operations in Scandinavia has not been at an adequate level and this is why we need a new strategy. Itella's goal is to ensure the profitability of its operations in all situations over the short and long term. The changes that are being planned now are necessary to reach this goal, says Senior Vice President Jani Jolkkonen.

The planned renewal does not affect Itella's logistics services in Finland, Baltics or other countries outside the scope of the changes. 

Due to the restructuring approximately EUR 13 million of non-recurring items will be recorded in the company's operating result, of which EUR 2 million will be recorded under the result of the third quarter. It is estimated that the change as a whole will not have a negative impact on cash flow.

 

For further information, please contact:

Tomas Olsson, Head of Itella Logistics Scandinavia and Baltics, tel. +46 733 163 820
Itella MediaDesk, tel. 020 452 3366 (mon-fri klo 9 am - 4.30 pm)