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Metso Prepares for Staffing Adjustments at Metso Power Oy
Vantaa, Finland, 30 March 2009 -- Metso will start personnel negotiations regarding the personnel of Metso Power Oy to adjust its operations in response to the weakening global market situation. The negotiations will affect all Metso Power Oy personnel in Tampere, Lapua, and Vantaa, Finland, a total of approximately 840 people. The negotiations will not affect the Finnish business of MW Power, which is a joint venture between Metso and Wärtsilä.

Through the personnel negotiations, Metso aims to adjust its business to respond to the needs of its customer industries. The objective is to find cost-saving measures to maintain competitiveness and develop future products. The primary reason for the adjustment is the structural change in the pulp and paper industry, which has weakened the demand for chemical recovery line equipment. The global economic crisis has slowed down decision-making regarding power plant investments in the energy industry.

In addition to higher operational efficiency and natural turnover, the adjustment measures under consideration will include, for example, the reduction of temporary employment contracts, voluntary off-time, part-time work, replacement of the holiday compensation with off-time, temporary lay-offs, and, as an extreme measure, personnel reductions.

If the targeted savings were to be achieved only through personnel reductions, it would mean a need to reduce 60-80 people during 2009-2011. The effect of these measures on different personnel groups will be specified as the negotiations proceed. The objective is to ensure that the employees’ know-how and the quality of Metso’s customer service will remain at a high level. The outcome of the personnel negotiations will be announced at the earliest in the middle of May.

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 more than 29,000 employees in more than 50 countries.

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