Componenta has finalized negotiations with the unions regarding the consolidation of Åmål and Främmestad machine shops

Componenta has finalized the negotiations with the unions regarding a proposal to consolidate the machine shop operations of Componenta Åmål to Componenta Främmestad in Sweden. The consolidation will take place in 2007. The target is to move 80% of Åmål’s production to Främmestad during July - September and the rest during the last quarter of the year. The consolidation will secure the Group’s long-term competitiveness through a larger unit size and effective operations. The consolidation is expected to improve the combined result of the business units by some EUR 2 million as from 2008.

All employees of Componenta Åmål machine shop are offered a job at Componenta Främmestad retaining their existing employee status. Åmål machine shop employed 65 people when the negotiations started in March 2007. Currently the amount of employees is about half of that.

Åmål and Främmestad are located quite close to each other, and both have the main production focused on the heavy truck industry. Componenta Åmål was founded in 1935 and acquired by Componenta in 1994. Componenta Främmestad was founded in 1953, and as from 1990 it has been part of Componenta Group. The machine shop employs 130 people.

Helsinki, 27 June 2007

COMPONENTA CORPORATION


Heikki Lehtonen
President and CEO




Further information:

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

Michael Sjöberg
Director, Machine shops division
tel. +46 70 252 1042