Componenta Alvesta to cease operations i
COMPONENTA STOCK EXCHANGE RELEASE 03.11.2003 AT 16.00
Componenta Alvesta to cease operations in May 2004 The personnel negotiations have been completed relating to the closing down of the operations of Componenta Alvesta AB, a Componenta business unit in Sweden. The Board of Componenta Alvesta decided on 3 November 2003 to run down the companys operations. The action to run down the foundry will start immediately and the foundry will cease operations by the end of May 2004. Componenta announced in August 2003 that it was merging the operations of Componenta Karkkila and Componenta Alvesta, two foundries of similar size that were operating at low capacity usage. At the beginning of October it was decided that the new foundry to be formed from merging these operations would be located in Karkkila. It was also decided to start personnel negotiations about closing down the operations of Componenta Alvesta AB. Componenta Alvesta had net sales in 2002 of EUR 12.1 million and recorded an operating loss of EUR 1.3 million. The foundry employs 120 people. Componenta offers work for the Alvesta personnel at the Karkkila foundry, and provides support for example for setting up an own business. Besides this an extra bonus relating productivity and delivery certainty has been agreed with Componenta Alvesta personnel. The new foundry in Karkkila will have annual net sales of EUR 26 million and a clearly positive operating result. The foundry will create 50 70 new jobs and will employ altogether 180 200 people. Componenta will record an estimated total of EUR 7 million in its result for 2003 in one time writedowns and costs for closing down operations arising from the merger of the Karkkila and Alvesta operations. Helsinki, 3 November 2003 COMPONENTA CORPORATION Heikki Lehtonen President and CEO FURTHER INFORMATION Heikki Lehtonen Lauri Huhtala President and CEO Director, Foundries Tel. +358 9 225 021 Tel. +358 50 581 0223 Componenta is a metal sector company with international operations and production plants located in Finland and Sweden. The company's net sales exceed EUR 180 million and the group employs about 1,700 people. Componenta's shares are quoted on the Main List of the Helsinki Exchanges. The groups customers operate in the heavy truck, power and transmission, machine building and off-road industries. Componenta specializes in supplying ready-to-install cast, geared and machined components directly to the customers assembly line. Componenta Corporation Nuijamiestentie 3 C FIN-00400 Helsinki , Finland Tel. +358 9 225 021 Fax +358 9 2250 2721 http://www.componenta.com