Neste Oil to start statutory employer-employee negotiations aimed at reducing 450 jobs in Finland

As part of efforts to respond to the company’s recent drop in profit performance, Neste Oil wants to achieve savings of over €60 million in its annual fixed costs. The plan is to secure around €30 million of this through personnel-related measures. To safeguard the company’s future competitiveness Neste Oil believes it needs to adapt its cost structure to the changes that have taken place in the market situation and Neste Oil’s organization, and ensure the successful implementation of the strategic investment program currently under way.

As part of its cost-saving program, Neste Oil has decided to start statutory employer-employee negotiations and a consultation process with personnel on possible temporary layoffs and permanent redundancies. The talks will cover personnel employed by Neste Oil and its subsidiaries in Finland. Neste Oil anticipates that 450 people will be affected. The company employs some 5,300 people, of which around 4,000 are based in Finland. In the consultation process the negotiators will try to find alternative solutions to making Neste Oil employees redundant.

Neste Oil has carried out a number of measures to save costs and improve the efficiency of its operations since the fall of last year. These have included canceling or postponing some planned capital projects, enhancing purchasing practices, and reducing fixed costs.

On 30 July 2009, Neste Oil published its second-quarter interim report, which reflected significantly reduced profit performance.

Neste Oil in brief

Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company’s target is to be the world’s leading supplier of renewable diesel. Neste Oil’s refineries are located in Porvoo and Naantali and have a combined crude oil refining capacity of approx. 260,000 barrels a day. The company had net sales of EUR 15 billion in 2008 and employs around 5,300 people. Neste Oil’s share is listed on the NASDAQ OMX Helsinki. www.nesteoil.com.