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Completion of Finnforest workplace consultation process regarding activities in Finland

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24/06/2004


Restructuring will phase out 256 job positions by the end of 2005

The workplace consultations concerning all of Finnforest Corporation's
activities and personnel groups in Finland that started 11.5.2004 were
concluded 22.6.2004. The consultations were held in accordance with Finland's
national law on cooperation within companies and aimed at creating the
preconditions necessary to create a real improvement in performance and thus
ensure the profitability, competitiveness and continuity of the company's
activities. These being the primary aims, the consultations and negotiations
resulted in the decision to reduce the number of personnel by 256, in place of
the maximum number of 400 that had previously been announced. The reduction
will take place by the end of 2005. Of the people involved, 93 will leave the
company through retirement arrangements during 2004 and 2005. A total of 180
job positions will be phased out during 2004. 

As a result of the consultations and decisions about restructuring, 21 of
Finnforest's corporate management and support staff in Espoo will have to leave
their positions. The size of the corporate management group will also be
significantly reduced. Some of those who are losing their positions will move
from the company through retirement schemes during 2004 and 2005. The contracts
for 11 employees on fixed-term contracts will also end and not be renewed. In
addition, 21 office employees will move from their present corporate posts to
other Finnforest units. When the workplace consultation process started
Finnforest had 89 employees in Espoo. The reorganisation of Finnforest's
corporate management and functions is continuing. In September the restructured
organisation will be working in accordance with the new operating plan and the
new management group will take up its tasks. 

Sales activities regarding Finnforest plywood products are being reorganised.
The export sales functions in Lahti will cease to exist in their present form
by the end of 2005. It was agreed that workplace consultation discussions in
Lahti would continue. The reorganisation arrangements there involve a total of
about 15 people. Export sales and support will in future be mainly taken care
of by Finnforest's country organisations in the markets and by the production
units. 

Corresponding measures to improve performance have already been taken in
Finnforest organisations in other countries. Finnforest Corporation employs
2,600 people in Finland. It has a total of 8,000 employees worldwide. 

Further information:
Ari Martonen, President and CEO, phone +358 50 2406
Mika Paljakka, Director, Human Resources, phone +358 50 598 9533
Markko Ihamuotila, Senior Vice President, Director, Marketing and
Communications, phone +358 50 598 7014

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