|
FEBRUARY 2009
Metso reduces personnel in Finland plant
Metso will start personnel negotiations
regarding employee reductions in
Finnish units serving the paper industry.
The employee reduction is estimated
to affect a total of 900 to 1,200
employees. Approximately 4,700 employees
work in the units subject to the
personnel negotiations. The possible
reduction in the number of units
and the consolidation of operations
into bigger units will be examined
as part of the negotiations.
The preliminarily planned employee
reductions are due to the need to
adjust production capacity to correspond
with the permanently decreased machine
and equipment demand in the pulp
and paper industry.
The situation has been further weakened
due to the global economic crisis.
The goal of the planned measures
is to secure the competitiveness
of the business by streamlining the
operating and cost structure of the
operations in Finland.
The personnel negotiations will start
in the paper business line and in
the automation business line’s Process
Automation Systems unit. They affect
all personnel groups at all locations
of these businesses in Finland.
In the paper business line, the reduction
need is estimated to be a total of
up to 1,100 people in the Roll Finishing
Systems unit in Hollola, the Technology
Center in Inkeroinen, the Jyväskylä
units, the Järvenpää units, the Service
Center in Oulu, the Tampere roll
factory, the paper business line’s
Turku units, the Valkeakoski units
and the Varkaus Service center. These
units employ approximately 3,800
people.
Last autumn, personnel negotiations
regarding temporary layoffs were
held in the paper business line’s
units in Finland. The measures have
already been initiated to some extent,
but they are not enough in the prevailing
market situation.
In the personnel negotiations, the
possible reduction in the number
of units and the consolidation of
the operations into bigger units
will be examined. At the same time,
the division of responsibilities
for Finland and China units will
be defined.
The Automation business line’s Process
Automation Systems unit’s employee
reduction need is estimated to be
90-130 employees. It will be also
studied whether some of the reductions
can be replaced by temporary lay-offs
of a larger number of employees.
Process Automation Systems unit’s
18 Finnish sites employ a total of
just over 830 people. The biggest
sites are in Tampere and Kajaani.
More than half of the orders received
by the Process Automation Systems
unit are from the pulp and paper
industry customers. Another significant
customer group is the energy and
process industry. During the negotiations,
the possibility of production consolidations,
the reorganization, divesture and
closure of certain businesses will
be examined and site arrangements
will be considered.
The personnel negotiations will start
immediately in the Paper business
line and the Process Automation Systems
unit, and the aim is to conclude
them by mid-March. The employee reductions
are expected to take place during
April-September of this year. In
the adjustment negotiations, the
possibility of part-time employment,
internal transfers and retirement
arrangements will be examined. The
number of permanent terminations
will be settled in the personnel
negotiations.
As a result of the arrangements,
the annual expenses of the businesses
in question are estimated to decrease
by 40-50 million euros. The cost
reductions are estimated to be realized
in full starting in 2010. The non-recurring
expenses caused by the arrangements
and recorded in 2009 are estimated
to be EUR 10-20 million.
|