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Neste Shipping to improve its operational efficiency and start statutory employer-employee negotiations



2013-01-28 09:47:45 -


Neste Oil Corporation
Press Release
28 January 2013 at 10.45 a.m. (EET)


Neste Shipping to improve its operational efficiency and start statutory
employer-employee negotiations

Neste Oil's shipping subsidiary, Neste Shipping Oy, is to start an efficiency
improvement program aimed at improving its profitability and securing the
continuity of its operations. Improved profitability will be essential to
enabling Neste Shipping to make the major statutory environmental investments
that will be required between 2014 and 2017, deal with rising costs, and handle
other projects and investments needed to secure the continuity of the company's
operations into the future.

As part of the efficiency improvement program, statutory employer-employee
negotiations will be started that could result in a maximum of 130 people being
made redundant. Negotiations will cover all of Neste Shipping's land- and sea-
based personnel in Finland, around 450 people in total. The goal of the
efficiency improvement program is to make the business profitable by increasing
revenue and reducing costs by a total of around EUR 15 million annually.

"Neste Shipping's financial position and profitability have been clearly below
the levels we have expected for some time," says Arvo Ruotsalainen, Neste
Shipping's Managing Director. "Freight rates have been low and costs have risen.
We do not see any fundamental change for the better taking place over the next
few years and it is impossible to achieve a sufficient level of improvement in
our performance using the current operating model. That is why we are now
looking for new solutions through statutory employer-employee negotiations to
secure the future continuity of the business."

Neste Oil Corporation

Osmo Kammonen
Senior Vice President, Communications, Marketing and Public Affairs

Further information:
Arvo Ruotsalainen, Managing Director, Neste Shipping, tel. +358 (0)50 458 8205

Neste Shipping in brief
Neste Shipping Oy is 100%-owned by Neste Oil Corporation and has a fleet of 24
vessels. Neste Shipping carries a total of close to 30 million t/a of crude oil,
petroleum products, and chemicals, primarily in the Baltic, the North Sea, and
the North Atlantic. Around half of Neste Shipping's capacity is employed
carrying Neste Oil cargoes, with the remainder used to carry cargoes for other
international customers.

Neste Oil in brief
Neste Oil Corporation is a refining and marketing company concentrating on low-
emission, high-quality traffic fuels. The company produces a comprehensive range
of major petroleum products and is the world's leading supplier of renewable
diesel. Neste Oil had net sales of EUR 15.4 billion in 2011 and employs around
5,000 people, and is listed on NASDAQ OMX Helsinki.

Neste Oil is included in the Dow Jones Sustainability World Index and the
Ethibel Pioneer Investment Register, and has featured in The Global 100 list of
the world's most sustainable corporations for many years. Forest Footprint
Disclosure (FFD) has ranked Neste Oil as one of the best performers in the oil &
gas sector. Further information: www.nesteoil.com




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Source: Neste Oil Oyj via Thomson Reuters ONE
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