Componenta to start statutory negotiations at Componenta Finland Nisamo concerning possible closure of the business unit

Componenta is starting statutory negotiations, as stipulated in the Finnish Act on Cooperation in Undertakings, in Componenta Finland Ltd. Nisamo on 18 October 2011. Componenta is planning to terminate operations of the business unit. Profitablity of the machine shop located in Lempäälä, Finland has been weak for a long period of time and its cash flow is negative. In addition, the business unit’s order book and future outlook are weak. Negative development of production volumes has mainly been caused by changes in wind power customer segment.

The statutory negotiations cover the Nisamo machine shop personnel in total of 34 people. Actions based on negotiations will be realized during the second quarter of  2012 at the latest.

One-time costs of possible terminating of operations are expected to be EUR 2.8 million.

To achieve its strategic goals of growing together with customers and being the preferred casting solutions provider for its customers, Componenta has to have competitive, profitable operations with a corporate structure that supports them.

Helsinki, 18 October  2011

COMPONENTA CORPORATION

Heikki Lehtonen
President and CEO

Further information:

Heikki Lehtonen
President and CEO
tel. +358 10 403 00

Componenta is a metal sector company with international operations and production plants located in Finland, Turkey, the Netherlands and Sweden. The net sales of Componenta were EUR 452 million in 2010 and its share is listed on the NASDAQ OMX Helsinki. The Group employs approx. 4,400 people. Componenta specializes in supplying cast and machined components and total solutions made of them to its global customers who are manufacturers of vehicles, machines and equipment.