Componenta - Company Announcement

Componenta plans to merge Pietarsaari foundry with Pori foundry

Componenta Corporation   Stock Exchange Release 30.9.2013 at 10.05

As part of the Group's efficiency programme to improve its profitability and
competitiveness, Componenta is improving the capacity utilization of its iron
foundries and concentrating production at larger units. 

Statutory personnel negotiations, as stipulated in the Finnish Act on
Cooperation in Undertaking will be started at the Pietarsaari foundry on 30
September 2013. The negotiations concern the possible transfer of the small
DISA production line at the Pietarsaari foundry to the Group's foundry in Pori
and as a result of that closure of the Pietarsaari foundry. 

At the negotiations the impact of these changes will be assessed on the
operations, volumes and personnel at the Pietarsaari foundry. If the changes
mentioned above are carried out, they will have an impact on personnel, and
this is estimated to mean a reduction of about 85 persons at the Pietarsaari
foundry by the end of the summer in 2014. One-time costs and write-downs in the
balance sheet would total some EUR 2 million during 2013 and 2014 and the
annual savings achieved would be about EUR 2 million. Capital expenditure
during the project would be about EUR 1 million. 

The proposed transfer of the small DISA production line and production from
Pietarsaari to Pori would improve the capacity utilization at the Pori foundry
and would strengthen its position as a flexible and competitive supplier to
Nordic customers. The transfer of production would have a positive impact on
employment at the Pori foundry. At present about 175 people work in Pori
foundry, and the estimated increase would be of about 40 people. 

The statutory personnel negotiations do not affect Componenta Corporation's
engineering personnel in Pietarsaari nor the Componenta Pistons business unit
which operates in Pietarsaari. These operations at present employ altogether 42
people. 

Componenta is strengthening its position as a global supplier of pistons by
carrying out a EUR 3.7 million investment. With this investment Componenta
Pistons will double its piston production capacity. The investment is expected
to be completed during 2014 and it is estimated to have a positive impact on
personnel of about 10 persons. 

Componenta is holding a press conference in Pietarsaari, Birgerintie 3, on 30
September 2013 at 11.00. 

Helsinki, 30 September 2013

COMPONENTA CORPORATION


Heikki Lehtonen
President and CEO



For further information, please contact:

Heikki Lehtonen
President and CEO
tel. +358 10 403 2200

Mika Hassinen
CFO
tel. +358 10 403 2723





Componenta is a metal sector company with international operations and
production plants located in Finland, Turkey, the Netherlands and Sweden. The
net sales of Componenta were EUR 545 million in 2012 and its share is listed on
the NASDAQ OMX Helsinki. The Group employs approx. 4,300 people. Componenta
specializes in supplying cast and machined components and total solutions made
of them to its global customers, who are manufacturers of vehicles, machines
and equipment.

Attachments:

release_Componenta_30092013_plan to merge Pietarsaari with Pori.pdf