Helsinki, Finland 13 November 2012 -- Metso has concluded the statutory employer-employee negotiations covering personnel in its units serving the paper industry. As a result of these discussions, 400 employees will be reduced and a further 136 positions will be outsourced in Finland.

The statutory employer-employee negotiations initiated in Metso units serving the paper industry in September this year and covering personnel reductions and layoffs have ended. Following the negotiations, which involved a total of approximately 4,100 employees, Metso has decided to reduce 400 jobs and outsource a further 136 positions. A total of 152 employees will take retirement and 15 will transfer to new positions in other Metso units. At the start of the negotiations on September 18, it was estimated that a maximum of 480 employees would be affected, and around 150 positions likely to be outsourced.

As a result of the negotiations temporary layoffs will only be implemented if they are required by the low production and order book in 2013. Temporary layoffs could affect jobs in units serving the paper industry in Juankoski, Jyväskylä, Järvenpää, Raisio, and Valkeakoski.

Metso will assist those affected through a comprehensive program aimed at helping them to set up their own company as well as retrain and find new jobs.

The redundancies and outsourcing that have been decided on are intended to achieve savings of approximatelyEUR 25 million in annual operational costs. Cost reductions in 2013 are expected to yield savings of approximately EUR 20 million.

“It’s very unfortunate that we have been forced to implement such large-scale measures affecting our personnel,” says Pasi Laine, President of Metso’s Pulp, Paper and Power segment. “By working closely and proactively with employee representatives, however, we will try to minimize the impact of the redundancies through a comprehensive program aimed at helping people find new employment.”

Metso’s decision to make these reductions in personnel is the result of the need to adjust the manufacturing capacity of the Group’s paper business unit to the permanent structural changes that have impacted the business and weakened its competitiveness and profitability.

As a result of restructuring, Metso will book non-recurring cost of around EUR 10 million in its fourth quarter results.

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