Metso Paper to rationalize its Jyväskylä foundry operations

Published May 5, 2008 10.00.00 +2 GMT

Metso Paper’s subsidiary, Metso Foundries Jyväskylä Oy will start personnel negotiations. The objective is to concentrate more efficiently on its core business of paper and board machine industry products. The need for reduction has been estimated to be 120–140 employees. The measures include all personnel groups.

Employee reductions are related to the company’s decision, which was announced in February 2008, to cease production on the foundry’s automatic moulding line due to its low profitability and decreased demand. Since the start of the year, Metso Foundries has been investigating various solutions to redeploy the line’s personnel. The assessments made have not, however, supported new investments in Jyväskylä.

The non-recurring costs caused by the reductions are estimated to be of minor significance to Metso. A more detailed estimate of the costs and other effects caused by these arrangements will be made once the negotiations have ended.

The personnel negotiations will begin in early May and it is estimated that measures will be implemented during the second half of 2008.

Roll and cylinder castings for the paper machine industry are a part of Metso Paper’s core business and their production will continue in Jyväskylä. In addition to these, Metso Foundries produces hand-moulded castings also for Metso Minerals and customers in other sectors.

Metso Foundries Jyväskylä Oy employs approximately 330 people.

Metso is a global engineering and technology corporation with 2007 net sales of over EUR 6 billion. Its almost 27,000 employees in approximately 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries.

For further information: Reima Kerttula Senior Vice President, Paper and board machines Metso Paper, Inc. Tel. +358 400 648 458

Jaakko Puurula Vice President, Personnel Metso Paper, Inc. Tel. +358 400 582 904