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Metso Commences Fiber Personnel Reduction Negotiations
Helsinki, Finland, 30 September 2009 -- Metso has commenced personnel negotiations regarding the reduction of about 400 persons in their Fiber business line (FBL) operations in Sweden and Finland. Approximately 1200 persons are employed in these operations.

FBL has initiated major changes in its operating model and organization structure to adjust operations to geographic shifts in the pulp and paper industry, and to decreased demand for capital equipment and for project sales. As part of this process, FBL’s five business units will be consolidated into two streamlined units (Fiber Processing Unit and Wood and Pulp Handling Unit) and Services, working alongside leaner and more efficient support functions.

The reductions are part of the process to streamline FBL’s operations and cost structure, to improve its competitiveness in a changing business environment. Additionally, the streamlining will improve operational flexibility and further strengthen FBL’s local operations, close to customers in growing markets.

The reductions will affect all personnel groups. Negotiations with unions have been commenced and are aimed to be concluded before the end of 2009.

Estimated reductions in Sweden would be 26 of 130 personnel at Hagfors, 94 of 219 personnel at Karlstad, and 168 of 575 personnel at Sundsvall. Estimated reductions in Finland would be 95 of 230 personnel at Pori and 17 of 45 personnel at Valkeakoski.

As a result of the restructuring, FBL’s annual costs are estimated to decrease by more than EUR 20 million. The cost reductions are estimated to be realized in full starting in 2011. One-off restructuring costs are estimated to be EUR 15 million, the majority of which are estimated to be booked during the 4th quarter of 2009.

Metso’s Fiber business line employs approximately 1800 people globally. Its largest sites are located in Sundsvall and Karlstad in Sweden, and Pori in Finland. The line supplies chemical and mechanical pulp industry customers with machinery and equipment, and aftermarket and expert services.

Metso (www.metso.com)  is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling, and the pulp and paper industries. The company has about 28,000 employees in more than 50 countries. 

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