CONSULTATION PROCESS IN SHEFFIELD CONCLUDED
OUTOKUMPU OYJ STOCK EXCHANGE RELEASE DECEMBER 23, 2005 AT 2.15 PM
CONSULTATION PROCESS IN SHEFFIELD CONCLUDED Following the announcement made in October 2005 relating to the cessation of operations at the Coil Products business in Sheffield (CPS), a consultation process has been taking place between Management and the local Trade Unions in line with legislation to consider ways of avoiding or reducing job losses or mitigating the impact of the job losses. The outcome of this process is that it has been accepted by both parties that there are no financially viable internal options to continue operations at CPS and to this end appropriate employee severance, outplacement and career support arrangements have been agreed with the local unions to mitigate against the job losses. It has now been agreed by the Trade Unions that the consultation process for CPS is concluded. To this end a final decision has now been made to cease operations at CPS at the end of April 2006. Detailed plans to satisfy remaining customer orders and to wind down operations at CPS in a safe manner are being finalised and will be implemented during Q1 2006. The number of personnel effected are some 570 in CPS and some 100 in the Sheffield melt shop, which will in the future supply raw material only to Outokumpus long products and plate operations. The cessation of operations at CPS will result in non-recurring write- downs and provisions, which will be recorded in the fourth quarter 2005 accounts, as announced in October 25, 2005 release. The effect on the Groups 2005 gearing will not be significant due to released working capital. The improvement of the Groups future operating profit level is estimated to be some EUR 50 million annually from the second half of 2006 onwards, compared to continuing business as usual within the current structure, and with the prevailing price and loading levels. Outokumpu will continue to deliver customers with its extensive selection of stainless grades and products, and complemented with commercial excellence will strive to retain or even increase market share in Europe. The UK market will continue to be served with Outokumpus stainless steel through its UK sales and distribution company, including the new service center in Sheffield, and all customer contacts will remain unchanged. For further information, please contact: Philip Rodrigo, HR Manager UK, mobile +44 780 293 3353, philip.rodrigo@outokumpu.com Pekka Erkkilä, Executive Vice President General Stainless, tel. +358 9 421 5503, pekka.erkkila@outokumpu.com Eero Mustala, Senior Vice President Corporate Communications, tel. +358 9 421 2435, mobile +358 40 504 5146, eero.mustala@outokumpu.com OUTOKUMPU OYJ Corporate Management Eero Mustala