Statutory negotiations in Pietarsaari concluded - Componenta is terminating machining operations in Pietarsaari

Componenta’s statutory personnel negotiations that began on 25 January 2011 at its Pietarsaari business unit have been completed. As the result of these negotiations, it has been decided to terminate machining operations at Componenta Finland Ltd’s Pietarsaari unit by the end of 2011. Factors leading up to this decision were that the profitability of machining operations at Pietarsaari has remained weak for a long time and the strategic changes that have taken place in the customer base in the heavy trucks industry.  

Most of the machining work that has taken place at Pietarsaari and many of the machine tools for this work will be transferred to the Group’s unit in Främmestad in Sweden during 2011. Componenta is strengthening the cast components supply chain by concentrating its business operations in larger, more profitable units.

This decision will have an impact on personnel, and the jobs of a maximum of 60 people will be phased out at Componenta’s Pietarsaari unit during 2011, by terminating fixed-term employment contracts and through retirement schemes and redundancies. The Pietarsaari unit currently employs about 270 people.

One-time costs from the termination of machining operations are estimated at some EUR 3 million and investment and product transfer costs at EUR 1 million in 2011. 

The termination of machining operations and the personnel reductions do not affect the Componenta Finland Ltd. Pistons unit in Pietarsaari.

Componenta is continuing its foundry operations in Pietarsaari and improving its profitability, for example through investments and development programmes.

Helsinki, 14 March 2011    

COMPONENTA CORPORATION

Heikki Lehtonen
President and CEO

FURTHER INFORMATION

Heikki Lehtonen                         Olli Karhunen 
President and CEO                   SVP, Finland Operations
tel. +358 10 403                         tel. +358 10 403 00

In addition, today, 14 March 2011, at 15.00 - 16.00 the company’s representatives will be available in the Componenta Pietarsaari unit (Tehtaankatu 13) to answer media’s questions regarding the above release.

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 452 million in 2010. The Group employs approx. 4,400 people. Componenta's shares are quoted on the NASDAQ OMX Helsinki. 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. 

 Componenta Corporation
Panuntie 4, FI-00610 Helsinki, Finland
Tel. +358 10 403 00
Fax +358 10 403 2721
www.componenta.com