Rapala VMC sells entire injection moulding business

Rapala VMC Corporation has sold its entire injection moulding business as part of its strategy to focus on its core business and to release capital.

The business has been bought by Finnish mould and injection moulded parts manufacturer, the Muottituote Group. The deal includes the acquisition of Rapala’s subsidiary KL-Teho’s site in Korpilahti in Finland, along with its injection moulding operations, equipment and personnel.

“Rapala has been collaborating with the Muottituote Group for decades, and with this deal the collaboration is further intensified,” said Lars Ollberg, CEO of Rapala VMC. “We have entered into a multi-year procurement agreement with Muottituote Group, ensuring timely deliveries of components to the Rapala VMC Group. This supports our new One More Turn strategy, aimed at accelerating inventory turnover and improving cash flow.”

Tuomas Akkanen, a member of Rapala VMC Corporation’s Global Management Team and Executive Vice President, Head of Group Supply Chain, added: “Rapala wants its own factories to focus on the production of finished products and acquire components from contract manufacturers. The Muottituote Group can focus better than us on developing quality and efficiency in its area of expertise.”

The agreement includes the transfer of around 20 employees to the Muottituote Group as existing employees. The factory’s operations will continue without interruption, maintaining the same functions as before. The transaction has no impact on the ice drill manufacturing operation at KL-Teho.