Vantaa, Finland, 17 March 2009 -- Metso has concluded employee negotiations relating to the Finnish units of its Paper business line, excluding Metso Foundries Jyväskylä Oy, where negotiations are still continuing. The negotiations concerned all of the units’ employees in Finland, totaling approximately 3800 people. As a result, Metso will reduce staffing by 718 employees, of which fixed-term employment contracts and retirement arrangements account for 424 people. The reductions will apply to all employee groups.
At the outset of negotiations on 26 January 2009, the reduction need was estimated at between 800 and 1100 employees. Employee reductions, by location, are as follows: Jyväskylä, 270; Järvenpää and Hollola, 201 total; Oulu, 31; Tampere, 45; Turku, 91; Valkeakoski and Inkeroinen, 76 total; and Varkaus, 4 The reductions will be implemented immediately, with the last employees leaving in 2010.
The following rearrangements relating to changes in production and business unit structures also have been agreed to in the negotiations:
- Operations will be terminated at Hollola and transferred to Järvenpää as part of the Paper Finishing unit.
- Operations will be terminated at the Oulu rubber covering unit and transferred in a more limited scope to Järvenpää’s production.
- Operations will be terminated at the Tampere roll factory and transferred in a more limited scope to Järvenpää’s production.
- Water technology operations will be transferred from Turku to Jyväskylä as part of the Paper Machines unit.
- Turku Chemical Systems operations will be transferred to Järvenpää as part of the Paper Finishing unit
With respect to Metso Paper Turku Works, the review of operating alternatives is continuing. In connection with the transfers, some of the employees in the units to be terminated (totaling 90-110 employees) will have the option of transferring to new locations. Metso will support those persons affected by the rearrangements by applying individualized incentive payments on certain conditions and by providing retraining and relocation services. Metso also will compensate removal and travel expenses for those changing their working location within the company.
The measures being taken are due to the permanent weakening of pulp and paper industry markets. The Paper business line’s operations and cost structure are being adjusted to the changed market situation. As a result of the rearrangements, the annual expenses of the Paper business line will decrease by an estimated EUR 40 million. The cost reductions are estimated to be realized in full starting in 2010. The nonrecurring expenses caused by the rearrangements and recognized in 2009 are estimated to be approximately EUR 15 million, the majority of which are estimated to be booked during the first quarter of 2009.
Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have over 29,000 employees in more than 50 countries. www.metso.com