A NEW OPERATING MODEL FOR TAMGLASS FINTON - EMPLOYEE NEGOTIATIONS COMPLETED
Kyro Corporation STOCK EXCHANGE RELEASE 3 May, 2006 at 4.00 p.m.
A NEW OPERATING MODEL FOR TAMGLASS FINTON - EMPLOYEE NEGOTIATIONS COMPLETED Balcony systems and rails supplier Tamglass Finton Oy, part of Kyro Group's main business area Glaston Technologies' Glass Processing Group, restructures its operations. The company has today completed employee negotiations related to its new operating model, as part of actions taken to improve the company's profitability and operational efficiency. The company's new operating model is product sales, due to which Tamglass Finton's own installation operations will end. The distribution of the company's high-quality balcony glazing and aluminium rail products will be done through a network of dealer and installer partners. Tamglass Finton's manufacturing is based on subcontracting, also from the other units of the Glass Processing Group. The organization according to the new operating model will employ five people, hence the need for reduction is 28 people. The reductions will be spread so that the installations in the order backlog are carried out as agreed, mainly by the company's own staff. Tamglass Finton is in the process of discussing the new employment of its staff with cooperation partners. The expense from the restructuring and the result improvement, achieved from this year's third quarter onwards, compensate each other, so the arrangement is not expected to have a significant impact on Kyro Group's result as soon as in 2006. At the end of last year, Kyro Group employed 1,222 people, of which 184 people worked in the Glass Processing Group. In Tampere on 3 May, 2006 Kyro Corporation Pentti Yliheljo President & CEO Further information: Kyro Corporation, IR & Communications Manager Ms Emmi Watkins, tel. +358 400 903 260 / emmi.watkins@kyro.fi Glaston Technologies, Glass Processing Group, Managing Director Mr Claus Carlsen, tel. +358 40 728 8191 / claus.carlsen@tamglass.com. Tamglass Ltd. Oy, HR Manager Mrs Stiina Enqvist, tel. +358 40 7150 796 / stiina.enqvist@tamglass.com Kyro Corporation is a financially solid and growing international technology group. The Glass Machinery Group, part of the main business area Glaston Technologies, is the global market leader in glass processing machines. Glaston Technologies' Glass Processing Group is the leading supplier of comprehensive architectural glass solutions in Finland and neighbouring areas. The Group's Energy business consists of the environmentally friendly, local energy producer Kyro Power. www.kyro.fi Distribution: Helsinki Stock Exchange, main media