Componenta starts negotiations aiming to restructure its forging operations in Sweden to develop productivity and profitability

Componenta intends to take measures in Sweden to develop the productivity and profitability of its forging business as part of the Group’s efficiency program that started in October 2012. The measures concern Componenta Wirsbo’s operations in Virsbo, Smedjebacken and Arvika, and aim to boost productivity, operations efficiency and profitability and to cut fixed costs at the forge.

The intention is to downsize the plant in Smedjebacken to a minimum and transfer products mainly to the plant in Arvika. Against this background, negotiations with the relevant unions in accordance with Swedish law have been started on 28 November, aiming to reduce 41 jobs in total in Smedjebacken. The goal is to complete the negotiations during 2012, so that the measures resulting from the negotiations will become effective during the first half of 2013.

Capacity utilization rates at Componenta Wirsbo have been low during 2012, and its operative result has been weak. The intended restructuring measures will boost the operative result in the forging business by some EUR 2.0 million. One-time costs arising from the changes will be recorded in the last quarter of 2012.

During 2013 the management of Componenta Wirsbo will focus their efforts on product transfers from Smedjebacken to Arvika, and on developing production processes, raising efficiency and improving ways of working.

Helsinki, 28 November 2012

COMPONENTA CORPORATION

Heikki Lehtonen
President and CEO

For further information, please contact:

Heikki Lehtonen
President and CEO
tel. +358 10 403 2200

Mika Hassinen
CFO
tel. +358 10 403 2723

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 576 million in 2011 and its share is listed on the NASDAQ OMX Helsinki. The Group employs approx. 4,700 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.