Exel Composites initiates employee negotiations concerning the closure of one of its manufacturing facilities in Nanjing, China

EXEL COMPOSITES PLC      INSIDE INFORMATION      28 FEBRUARY 2022 at 09:00 EET

Exel Composites has initiated employee negotiations concerning the closure of its manufacturing facility located in downtown Nanjing, China. The negotiations concern 46 employees. In addition to this facility, Exel Composites has another manufacturing site in the Nanjing area, where the production of the site to be closed is intended to be transferred.

The potential closure of the Nanjing site would result in annual synergies and cost savings totaling approximately EUR 0.7 million. According to preliminary estimations, the closure and transfer of production would result in a one-time cash cost of approximately EUR 1.2 million and a non-cash asset write-off of approximately EUR 1.0 million.

Furthermore, Exel Composites is planning to sell the real estate of the factory to be closed. The aggregated one-time impact of the closure and the sale of the facility is estimated to be positive on Group operating profit and cash flow in 2022.  

Vantaa, 28 February 2022

Exel Composites Plc
Riku Kytömäki, President and CEO

For further information, please contact:
Riku Kytömäki, President and CEO 
tel. +358 50 511 8288 
riku.kytomaki@exelcomposites.com

Mikko Kettunen, CFO 
tel. +358 50 347 7462 
mikko.kettunen@exelcomposites.com

Distribution
Nasdaq Helsinki Ltd 
Main news media 
www.exelcomposites.com

Exel Composites in brief

At Exel Composites, we use over 60 years’ experience to solve challenges and help customers save resources. Our forward-thinking composite solutions made with continuous manufacturing technologies serve customers in a wide range of industries around the world. You can find our products used in applications from wind power and transportation to building and infrastructure.  

Our collaborative approach and global footprint set us apart from our competition. We use our expertise to help customers reduce weight, improve performance and energy efficiency and decrease total lifetime costs. We want to be the first choice for sustainable composite solutions globally. 

Headquartered in Finland, Exel Composites employs approximately 700 forward-thinking professionals around the world and is listed on Nasdaq Helsinki. To find out more about our offering and company please visit www.exelcomposites.com.