Lehto starts employee cooperation negotiations to improve profitability

Lehto Group Plc
Insider information
10 September, 2019 at 8.00 am.

Lehto Group will start employee negotiations on measures to improve profitability and to adjust its personnel and factory capacity to the current need.

Lehto estimates that the ongoing employee cooperation negotiations can lead to a total reduction of up to 150 man-years, which aims at annual cost savings of approximately EUR 7 million. Negotiations may include redundancies, lay-offs, part-time work, job reassignments and reassignments, and related retraining issues. It is estimated that the negotiations will be completed by the end of October 2019.

The negotiations concern almost all the units in Finland. The Housing service area with its pipeline renovation business and Insinööritoimisto Mäkeläinen Oy will be excluded from the negotiations as their current project portfolio does not demand any actions. In the Business Premises service area negotiations concern only remaining complete renovation activities.

At the end of June 2019, Lehto's Finnish units employed 1,524 people, of whom 374 worked in factory operations. The employee cooperation negotiations concern a total of 540 persons.

Further information:

Hannu Lehto
CEO
hannu.lehto@lehto.fi
+358 500 280 448

Lehto Group PLC:

Lehto is fast growing construction and real estate group. We operate in four service areas: Business Premises, Housing and Social Care and Educational Premises. We are the innovator and pioneer of the construction sector. Our economically driven operating model makes construction more profitable, ensures the quality of construction and brings significant time and cost savings to the customer. We employed around 1,500 people. Our net sales for 2018 amounted to EUR 721.5 million.