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Management Side
Technical Side
Metso Initiates Reductions in Swedish Manufacturing Capacity
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Helsinki, Finland, 27 November 2007 -- Metso Paper will start to evaluate the options and effects of restructuring its manufacturing resources at its two Swedish units in Grästorp and Kamfab AB in Karlstad. The company will commence personnel negotiations at both locations immediately and the aim is to finish them by the end of January 2008.

The measures support the implementation of Metso's global operations footprint strategy and target to improve Metso Paper's competitiveness by strengthening its operations closer to customers in the emerging markets. At the same time the company is developing the profitability and productivity of its units located in the Nordic countries.

The Kamfab factory in Karlstad belongs to Metso Paper’s Fiber business line and currently manufactures machinery and equipment for pulp making. It became a part of Metso in the beginning of 2007 as a result of the acquisition of the Aker Kvaerner's Pulping business, and its capacity has been underutilized due to the overlaps with Metso's other operations in the Nordic countries. The plan now is to transfer the unit into a service unit for the European pulp industry customers. The negotiations will affect approximately 90 persons.

The Grästorp unit, which is a part of the Paper and Board business line and employs approximately 50 persons, manufactures screen baskets. Metso's plan is to concentrate the screen basket production to other units outside Sweden. The negotiations will cover all operations and personnel groups. Screen baskets are used in pulp making for removing any materials unsuitable for the end product.

Metso is a global engineering and technology corporation with 2006 net sales of approximately EUR 5 billion. Its more than 26,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry, and selected other industries.
www.metso.com


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