Business News
Metso to reduce 718 employees in the Paper business lines Finnish operations
Tuesday 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 3,800 people.
As a result, Metso will make 718 employee reductions, 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 January 26, 2009, the reduction need was estimated at between 800 and 1,100 employees.
Numbers of employee reductions, by location:
Jyväskylä 270
Järvenpää and Hollola, total 201
Oulu 31
Tampere 45
Turku 91
Valkeakoski and Inkeroinen, total 76
Varkaus 4
The reductions will be implemented immediately, starting in March 2009 and with the last employees leaving in 2010.
Rearrangements affecting production and the business units
The following rearrangements relating to changes in production and business unit structures have also been agreed 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 Järvenpääs production
– Operations will be terminated at the Tampere roll factory and transferred in a more limited scope to Järvenpääs 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 will also compensate removal and travel expenses for those changing their working location within the company.
The measures decided are due to the permanent weakening of pulp and paper industry markets. The Paper business lines operations and cost structure is being adjusted to the changed market situation.
As a result of the rearrangements, the annual expenses of the Paper business line are estimated to decrease by 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.