Valmet Automotive’s production volume to decrease in spring

Dec 08, 2006

Valmet Automotive’s production volume is estimated gradually to decrease during spring to about 100 cars per day by April 2007. During first eleven months in 2006 the production volume has been approximately 150 cars per day. The reason for the decrease is the overall uncertain situation in the automobile market and its effects on the demand for the car factory’s products. The decrease in volume will mean an additional reduced need for employees.
Valmet Automotive announced in November a decrease in the daily production volume from 153 cars to 132 cars. At the same time, personnel negotiations regarding 80 employees were initiated. At the personnel negotiations held today, the company informed the employee representatives of the impact the further decrease in production volumes will have on the personnel. Now there is a need to reduce personnel strength by 260 instead of the previously estimated 80. The intention is to maintain the previously communicated schedule for the personnel negotiation decisions, i.e. the second to the last week of December.

The car factory currently employs about 1,060 people. Valmet Automotive’s net sales during the first nine months in 2006 were EUR 81 million and operating profit EUR 10.7 million. Valmet Automotive is part of Metso Corporation.

Metso is a global engineering and technology corporation with 2005 net sales of approximately EUR 4.2 billion. Its 22 000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries.
www.metso.com

It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for customer industry profitability and investment willingness, expectations for company growth, development and profitability and the realization of synergy benefits and cost savings, and statements preceded by ”expects”, ”estimates”, ”forecasts” or similar expressions, are forward-looking statements. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by the company.

Such factors include, but are not limited to:
(1) general economic conditions, including fluctuations in exchange rates and interest levels which influence the operating environment and profitability of customers and thereby the orders received by the company and their margins
(2) the competitive situation, especially significant technological solutions developed by competitors
(3) the company’s own operating conditions, such as the success of production, product development and project management and their continuous development and improvement
(4) the success of pending and future acquisitions and restructuring.

Kati Renvall

Contact Information

Tapio Kuisma

President

Valmet Automotive

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