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2007-11-30 09:00:27 CET 2007-11-30 09:00:27 CET REGLERAD INFORMATION Rapala VMC - Company AnnouncementRAPALA PROCEEDS IN CONSOLIDATION OF ITS OPERATIONS IN FRANCESTOCK EXCHANGE RELEASE November 30, 2007 In July, Rapala VMC Corporation ("Rapala") announced its plans to consolidate all its French operations to Morvillars in Eastern France. Negotiations with personnel and labour unions have now been completed and execution of the plan has started. Rapala aims to move the distribution unit Ragot from Loudeac in Bretagne and the distribution unit Waterqueen and the fishing line supplier Tortue from Saint Marcel in Central France to Morvillars. The distribution operations of VMC Europe will also be moved to the same premises. This consolidation of operations will affect almost 90 persons in France, and they were all offered work in the new location. The relocation of Ragot has already started and will be completed in the next few weeks. The Waterqueen and Tortue moves are planned for mid-2008 and VMC Europe during the third quarter of 2008. Based on negotiations with personnel, only some 20% have indicated their willingness to move to the new location. Accordingly, new personnel will be recruited in Morvillars. Based on this and other available information regarding the consolidation of operations, Rapala will book a restructuring provision of 2.8 MEUR in the fourth quarter. In addition to the 0.1 MEUR expense booked in the third quarter, this restructuring will cause some 0.5 MEUR other expenses that will be booked during the next 12 months. The new leased premises in Morvillars have been prepared for the consolidated operations. The total investment in the new distribution centre including also IT is 0.5 MEUR. The plan is also to invest 0.4 MEUR in line spooling facilities in order to further improve operations. Rapala expects to sign a sale agreement for the warehouse and office building in Saint Marcel before the end of the year and is expecting to book a capital gain of some 1.3 MEUR in the fourth quarter. The plan is also to sell the warehouse and office building in Loudeac. With the consolidation of the operations to one location in France, the Group plans to gain major savings and efficiency improvements in deliveries and transportation, customer service and marketing, procurement and supplies, maintenance, organisational synergies and other location and logistical benefits. After all relocations have been made and the new organisation is up and running, the annual savings are expected to reach 1-2 MEUR."This is a major change for our operations in France but it will improve our competitiveness and ensure that we can continue with major manufacturing and distribution operations in France in the future despite tough competition," states Stanislas de Castelnau, Head of Fishing Hook Business & Distribution in France. RAPALA VMC CORPORATION Jorma Kasslin Chief Executive Officer For further information: Jouni Grönroos, Chief Financial Officer, tel. +358 9 7562 540 Olli Aho, Company Councel, tel. +358 9 7562 540 Distribution: Helsinki Stock Exchange Main Media Rapala VMC Corporation is a leading fishing tackle company and the global market leader in the fishing lures, treble hooks and fishing related knives and tools. The Group also has a strong global position in other fishing categories. The Group has its own distribution companies in all the main markets and the largest distribution network in the industry. The main manufacturing facilities are located in Finland, France, Estonia and China. The Group brand portfolio includes the leading brand in the industry, Rapala, and other global brands like VMC, Storm, Blue Fox, Luhr Jensen, Williamson and Marttiini. The Group, with net sales of EUR 227 million in 2006, employs more than 4 000 people in 29 countries. |
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