2013-09-18 09:04:03 -
Metso Corporation's stock exchange release on September 18, 2013 at 10:00 a.m.
Metso's Pulp, Paper and Power segment has completed statutory negotiations in
most of units serving the paper industry. As a result of these, the workforce in
Finland will be reduced by a total of 660 positions.
The negotiations were part of Metso's global cost competitiveness program
launched in April 2013 (stock exchange release April 23, 2013) to adapt to
changes in the marketplace. The program targets an annual cost reduction in the
Pulp, Paper and Power segment of approximately EUR 100 million by 2016. The aim
of the personnel reductions at this stage is to achieve savings of approximately
EUR 50 million in annual costs. The cost savings for 2013 are estimated to be
EUR 5 million.
a result of the negotiations, Metso will reduce its workforce by a total of
660 positions. The original estimate was for the reduction of 750 positions. The
reduction will take place through redundancies, retirement options and
terminations of temporary contracts. Internal transfers will take place too.
The impact of the reductions on the different Metso locations will be determined
soon, after details of how many employees will transfer to other locations
within the company are known.
Statutory negotiations covering Finnish operations in the company's EMEA
(Europe, Middle East, Africa) area organization are continuing.
In addition to personnel reductions, temporary layoffs might also be possible if
required by the business' workload or financial situation. This possibility
will remain in force until the end of 2014, by which time the situation will
have been reviewed. The possibility of temporary layoffs affects all units
serving the paper industry.
Metso will provide a range of support measures for those affected by the
restructuring through its "Polku" employment support program, which includes
support for entrepreneurship, studying, re-employment, such as job-to-job
training, and relocation support.
"These personnel reductions are necessary to adjust our capacity in the Paper
business to meet the fundamental structural changes that have taken place in our
operating environment. Working together with personnel representatives, we are
actively seeking to soften the impact of the reductions with the help of our
wide-ranging employment support program," says Pasi Laine, President of Metso's
Pulp, Paper and Power segment.
Metso's pulp, paper and power professionals specialize in processes, machinery,
equipment, services, paper machine clothing and filter fabrics. Our offering and
experience cover the entire process life cycle including new production lines,
rebuilds and services.
As of January 2014, Metso's Pulp, Paper and Power business will serve its
customers with an even more focused and competitive approach as an independent,
listed company, Valmet Corporation*.
* Pending Metso EGM approval.
Metso is a global supplier of technology and services to customers in the
process industries, including mining, construction, pulp and paper, power, and
oil and gas. Our 30,000 professionals based in over 50 countries contribute to
sustainability and deliver profitability to customers worldwide. Metso's shares
are listed on the NASDAQ OMX Helsinki Ltd.
Further information, please contact:
Pasi Laine, President, Pulp, Paper and Power, Metso, tel. +358 20 484 3200
(after 1.30 p.m.)
Jari Vähäpesola, President, Paper business line, Pulp, Paper and Power, Metso,
tel. +358 40 558 6555 (after 1.30 p.m.)
VP, Investor Relations
NASDAQ OMX Helsinki Ltd
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Metso Corporation via Thomson Reuters ONE