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Orkla to establish a shared accounting centre

President & CEO Åge Korsvold

President & CEO Åge Korsvold

Orkla intends to establish a shared accounting centre in Tallinn, Estonia, with a view to increasing the efficiency of the Group’s accounting processes.

The accounting centre will be developed from an accounting centre established by Rieber & Søn in Tallinn before the company was bought by Orkla in August 2012.

The intention is to transfer the accounting function of the first companies in February 2014. The next step of the plan is to transfer other companies in the course of an implementation phase expected to run from 2014 to 2016.

Orkla currently has a shared accounting centre for the Norwegian companies in the Orkla Confectionery & Snacks and Orkla Home & Personal business areas. The other companies have their own accounting functions.

“It is important that Orkla is competitive at every level of the value chain. We see that we can realise clear efficiency gains by establishing a shared accounting centre for the Group. This will also enable the companies’ finance functions to focus more attention on supporting the commercial operations,” says Orkla President and CEO Åge Korsvold.

Savings are estimated to total around NOK 15-20 million per year once the accounting centre is fully operational. The functions that will be transferred are accounting services such as supplier invoice processing, follow-up of receivables and other transaction-based tasks. The part of the companies’ accounting functions relating to such matters as preparation of statutory financial statements and tax returns will not be transferred to the accounting centre.

During the three-year implementation period, redundancies in the Nordic region are expected to total around 40 employees, about half of them in Norway. The intention to relocate accounting functions will be discussed with employee representatives in all the companies concerned before any decisions regarding changes are made. A personnel programme will be developed for the employees who will be directly affected by the transfer. At Orkla’s accounting centre in Tallinn, it will be necessary to increase the number of positions.

Orkla ASA
Oslo, 4 September 2013

Ref.:
EVP Corporate Communications and Corporate Affairs
Håkon Mageli
Mobile +47 928 45 828