Finnforest Corporation to start rationalisation negotiations concerning operations in Finland

05/05/2004

Finnforest Corporation has issued a proposal for beginning rationalisation
negotiations concerning all Finnish operations and personnel groups. The
objective is to accomplish a considerable improvement in the corporation's
result and thus ensure the profitability, competitiveness and continuity of the
company. In 2003, Finnforest Corporation's results showed a loss of 25 million
euros. The results for the first quarter in 2004 also showed a loss. 

The operations in Finland will be reorganised to increase efficiency in
operations and reduce costs. Corresponding actions to improve efficiency have
been taken in other Finnforest country organisations. 

Finnforest corporation employs 2 600 people in Finland. Altogether, the
Corporation employs 8 000 people. 

The rationalisation negotiations will begin on 11 May 2004. Presently, the
negotiations are estimated to lead to an amount of 400 jobs reduced at the
most. 

More information:  
Ari Martonen, President and CEO, 
mobile 050 2406
Mika Paljakka, Senior Vice President, Human Resources, 
mobile 050 598 9533
Timo Pekkola, Senior Vice President, Market Area Finland, 
mobile 0400 650 184
 
Finnforest, which is part of the Metsäliitto Group, is the largest mechanical
forest products corporation in Europe with 8,000 employees.  Its two industrial
divisions are Solid Wood, which produces sawn timber products, and Engineered
Wood, which manufactures higher value-added articles. Sales and Distribution
Division serves over 20 countries. Finnforest offers wood-based product and
service solutions to its customers in the construction, industrial,
distribution and retailing segments. More information on Finnforest at
www.finnforest.com