LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE May 25, 2004, 3.15 pm
MACHINIUM RESTRUCTURING CONTINUES WITH THE SALE OF THE BACKHOE LOADER
Agreement has been reached between the Machinium Ltd subsidiary Lännen
Engineering Oy, on the one hand, and AVS-Yhtiöt Oy, AVS-Yhtiöt
Managing Director Antero Parma and Timo Huttunen, on the other, on the
sale of the business operations of Lännen Engineering Oy, which
manufactures medium-sized backhoe loaders. The deal means that Lännen
Engineering Oys business operations will be transferred to a new
company, Lännen Tractors Oy, on May 25, 2004. The proceeds from the
sale will be used to strengthen the capital structure of the companies
in Lännen Tehtaat plcs Machinium Division.
Lännen Engineering Oys net turnover in 2003 was EUR 16 million, and
its profit before extraordinary items EUR 0.9 million. Following the
deal, the companys 130 employees at its Loimaa plant will be employed
by Lännen Tractors Oy.
Suomen Rakennuskone Group and SMA Construction AB will continue to
distribute Lännen backhoe loaders in Finland, Sweden and the Baltic
AVS-Yhtiöt manufactures and supplies pneumatic and hydraulic equipment
and industrial valves for industrial customers in Finland and for
export. AVS-Yhtiöts net turnover in 2003 was approximately EUR 50
million and it employed about 250 people.
Timo Huttunen, Managing Director of both Machinium Ltd and Lännen
Engineering Oy, will take up the position of Managing Director of
Lännen Tractors Oy.
LÄNNEN TEHTAAT PLC
President & CEO
More details: Erkki Lepistö, tel. +358 2 8397 4001.