Honkarakenne Oyj has concluded the cooperation negotiations, begun in October, regarding the reorganisation of its production. As a result of the reorganisation, the company will dismiss 11 employees from production, and a further 15 employment contracts will be subject to redundancy-based provisional amendments. Most of the measures decided upon will be implemented before the end of 2020, but some of them can still be implemented in early 2021.
The reorganisation will make the company's production processes more efficient and improve its competitiveness in the market. Furthermore, the reorganisation will improve the company’s efficiency to make products that meet the demand and modern construction standards. The company estimates that the efficiency measures will take full effect in the second half of 2021.
As a result, the company will recognise the costs of the reorganisation, Euro 0.3 million, in its income statement for 2020. The reorganisation costs consist of the wages and other personnel costs related to the notice period for the redundancies. The company will define the reorganisation costs as adjustment items that do not affect its adjusted profit.
Honkarakenne manufactures high-quality, healthy and ecological detached houses, holiday homes and public buildings using Finnish solid wood.
