NEGOTIATIONS CONCLUDED UNDER THE ACT ON CO-OPERATION WITHIN UNDERTAKINGS

1/4/2013 4:45 AM EST

Honkarakenne Oyj
Company Announcement

NEGOTIATIONS CONCLUDED UNDER THE ACT ON CO-OPERATION WITHIN UNDERTAKINGS

HONKARAKENNE OYJ Stock Exchange Release 4 January 2013 at 11:45 a.m.

NEGOTIATIONS CONCLUDED UNDER THE ACT ON CO-OPERATION WITHIN UNDERTAKINGS

Honkarakenne has concluded co-operation negotiations launched 8 November 2012
to reduce the number of locations with the aim of consolidating operations in
Finland. The consolidation plans covered the company’s entire staff in Finland. 

As a result of co-operation negotiations Honkarakenne has decided to close its
Alajärvi location. The production of Honkarakenne will be centralized at
Karstula mill in Central Finland. 

Due to the restructuring activities caused by the consolidation, a total of 68
persons will be dismissed. 

In addition, the company has agreed on temporary lay-offs for a maximum of 90
days by the end of September 2013 concerning the entire staff in Finland. 

The personnel reductions and restructuring activities will result in 3.5
million euros non-recurring costs and write-offs in financial year 2012, of
which 2.0 million euros are write-offs of fixed assets and 1.5 million euros
are provision costs for dismissals. 

The current estimate is that the consolidation will be completed by the end of
August 2013. 

HONKARAKENNE OYJ



Mikko Kilpeläinen

President and CEO



For further information, please contact:

Mikko Kilpeläinen, President and CEO, tel. +358 50 542 5884,
  







DISTRIBUTION

NASDAQ OMX Helsinki Oy

Key media

Financial Supervisory Authority

www.honka.com