1ORNBV Orion Corporation

The change negotiations concerning Orion’s Kuopio plant have been concluded – the company has decided to continue to explore the outsourcing of production at the plant

ORION CORPORATION PRESS RELEASE 22 March 2024 at 12.00 EET

The change negotiations concerning Orion’s Kuopio plant have been concluded – the company has decided to continue to explore the outsourcing of production at the plant

Orion Corporation announced on 19 February 2024 that it was evaluating the possible outsourcing of its pharmaceutical production in Kuopio, part of its Global Operations function, to an entity outside Finland. The related statutory negotiations in accordance with the Act on Co-operation within Undertakings have now been concluded.

Alternatives for the outsourcing and its personnel impacts were examined in the statutory negotiations. Orion has decided to continue to explore the outsourcing of production at the Kuopio plant. The estimated time scope is that the plant would continue to operate until at least the summer of 2026.

All ca. 40 employees included in the negotiations will be offered jobs of a comparable level at other Orion production sites in Finland. The statutory negotiations included the entire personnel in operations and functions which support production in the Kuopio plant. Other employees working in the Kuopio plant were not impacted by the statutory negotiations.

The evaluation of the outsourcing of production at the Kuopio plant has been due to the low competitiveness of the plant, low capacity utilisation, increasing quality requirements in the pharmaceutical industry, and high investment needs.

Orion’s manufacturing plant in Kuopio specialises in liquids and self-care products. Among the most widely known of the products manufactured in Kuopio are nasal sprays, cough medicines, and ear drops. These products would continue to be part of Orion’s product portfolio also in the future.

Orion’s Global Operations and Quality Management have about 1,900 employees in total. Global Operations consists of production at Orion's own plants in Espoo, Turku, Kuopio, and Salo; an external supplier network; procurement; and Fermion Oy, which manufactures active pharmaceutical ingredients in Hanko and Oulu.

Contact person:Terhi OrmioVP, Communicationstel. +358 10 426 4646 

Publisher:Orion CorporationCommunicationsOrionintie 1A, FI-02200 Espoo, Finlandhttp://www.orion.fi/en http://www.twitter.com/OrionCorpIR

Orion is a globally operating Finnish pharmaceutical company – a builder of well-being. We develop, manufacture and market human and veterinary pharmaceuticals and active pharmaceutical ingredients. Orion has an extensive portfolio of proprietary and generic medicines and consumer health products. The core therapy areas of our pharmaceutical R&D are oncology and pain. Proprietary products developed by Orion are used to treat cancer, neurological diseases and respiratory diseases, among others. Orion's net sales in 2023 amounted to EUR 1,190 million and the company had about 3,600 employees at the end of the year. Orion's A and B shares are listed on Nasdaq Helsinki.