Business News
Metso initiates negotiations on personnel reductions in Fiber business line to improve competitiveness in changing business environment
Wednesday 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 1,200 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, FBLs 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 FBLs operations and cost structure, to improve its competitiveness in a changing business environment. Additionally, the streamlining will improve operational flexibility and further strengthen FBLs 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 by location are:
Location Estimated reduction Current FBL personnel
Sundsvall, Sweden 168 575
Pori, Finland 95 230
Karlstad, Sweden 94 219
Hagfors, Sweden 26 130
Valkeakoski, Finland 17 45
(including Jämsänkoski)
Total 400 1199
As a result of the restructuring, FBLs 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.
Metsos Fiber business line employs approximately 1,800 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, as well as aftermarket and expert services.