Componenta plans to merge the Heerlen foundry and the Weert foundry in the Netherlands

Componenta Corporation Stock Exchange Release 18.7.2016 at 15

Componenta is planning to transfer the production of the Heerlen foundry, where appropriate, to the Weert foundry. All of Componenta’s functions located in the Netherlands would then be centralized at the Weert business unit and the Heerlen production facility would be closed down by the end of 2017.

“The planned measure, if realized, is a major step improving profitability and efficiency in the Netherlands business area and it would also help Componenta in achieving its target of increasing the capacity utilization of the company. A planned centralization of the production to Weert could be managed by lower investment and one-time costs compared to the previously, on 14 July 2015, announced planned transfer of the Weert production line to the Heerlen foundry,” says CEO and President Harri Suutari.

The statutory negotiations in connection with the plan began on 18 July 2016.

The planned centralization measure would affect approximately 60 employees. Componenta employs in total approximately 340 employees in the Netherlands (excluding leased personnel).

The cost savings from the planned measure are estimated at approximately EUR 5 million annually and would be achieved gradually by the end of the year 2017. One-time costs are estimated to be approximately EUR 6 million.

During the spring 2016, Componenta has also finalized a process to combine its production of large furan cast components with Belgian Ferromatrix and closed down a furan line located in Heerlen.

Helsinki, 18 July 2016

COMPONENTA CORPORATION


Harri Suutari
President and CEO

For further information, please contact:

Harri Suutari
President and CEO
tel. +358 400 384 937   

Markku Honkasalo
CFO
tel. +358 10 403 2710
 

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 495 million in 2015 and its share is listed on Nasdaq Helsinki. The Group employs approx. 4,250 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.