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Metso’s Pulp, Paper and Power business continues its cost reduction program to improve competitiveness


Metso’s Pulp, Paper and Power business will continue its global cost competitiveness program launched in April 2013 (stock exchange release April 24, 2013) to adapt to changes in the marketplace. As part of the global program – which targets an annual cost reduction of approximately EUR 100 million by 2016 – the business will begin statutory negotiations on personnel reductions in several of its units serving especially the paper industry, but also the pulp industry.

The Metso locations affected will be determined during the negotiation process. Negotiations will be commenced immediately, and will affect all personnel groups. In total the estimated amount of necessary headcount reductions are 750 positions primarily in Finland. Reduction measures will include e.g. redundancies, internal transfers, early retirement options, terminations of temporary contracts and temporary layoffs, closing of office and/or production locations, if so decided as part of the negotiation process. The reduction measures are expected to be implemented during the third quarter 2013.

The target is to achieve savings of approximately EUR 50 million in annual operational costs as a result of the negotiations. It is estimated that the savings will be realized in full as of the third quarter 2014.
The aim of the reduction measures is to bring production capabilities in line with current and expected demand, and secure the businesses’ global competitiveness over the longer term. A lighter operational cost structure and greater flexibility is essential.

“We have already implemented some measures and need to continue with the cost savings to improve our competitiveness and profitability. Significant, permanent structural changes in our paper machinery business’ operating environment have impacted our operations and undermined our competitiveness and profitability. The demand for paper machinery is low and moving towards cheaper technology solutions”, says Pasi Laine, President of Metso’s Pulp, Paper and Power business.

“The paper industry continues to be important to us as a business, despite the slowdown in the printing paper machinery market. Board and tissue consumption is continuing to grow moderately, and Metso’s large installed base will offer us opportunities to further develop our services business. A lighter cost structure will enable us to compete more effectively in the marketplace.”

In Metso’s Fiber business line, that serves the pulp industry, measures are taken to improve competitiveness and profitability. More efficient use of common resources, connected to a move closer to major customers is therefore necessary.

“Because of these reasons we unfortunately must take such strong measures affecting our employees”, Pasi Laine says.

As part of the 100-million-euro cost competitiveness program the business carried out statutory negotiations on personnel reductions in its Power and Fabrics units globally earlier this year, resulting in annual cost savings of approximately EUR 25 million.

Metso’s pulp, paper and power professionals specialize in processes, machinery, equipment, services, paper machine clothing and filter fabrics. Our offering and experience cover the entire process life cycle including new production lines, rebuilds and services.

As of January 2014, Metso’s Pulp, Paper and Power business will serve its customers with an even more focused and competitive approach as an independent, listed company, Valmet Corporation*.

*Pending Metso EGM approval.,,

Metso is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. Our 30,000 professionals based in over 50 countries contribute to sustainability and deliver profitability to customers worldwide. Metso’s shares are listed on the NASDAQ OMX Helsinki Ltd.,


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