Metso Corporation's stock exchange release on September 18, 2013 at 10:00 a.m. local time
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.
As 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