Tulikivi Oyj - Company Announcement

Codetermination negotiations in Tulikivi Corporation´s natural stone products busineses have been concluded

TULIKIVI CORPORATION             STOCK EXCHANGE RELEASE

FI-83900 Juuka                   30 June 2011 at 18:50









Codetermination negotiations in Tulikivi Corporation's natural stone products
business have been concluded 



Initiated in May, the Tulikivi Group's codetermination negotiations on
discontinuing its building stone manufacturing and on centralising and
reorganising production were concluded today. 

 The negotiations were part of the Tulikivi Group's profitability programme.
The company wants to focus on its core business in the future: fireplaces,
saunas and interior stone products. 

 As a result of the codetermination negotiations, Tulikivi will discontinue its
building stone business in Taivassalo and focus its natural stone products
business on interior stone production at the Espoo factory. At the same time
the production of counter tops in Taivassalo will end. 

 It was decided that at the most 15 people will be made redundant at the
Taivassalo factory. The building stone personnel will continue their employment
as existing employees under the new owner. Tulikivi sold its Taivassalo-based
building stone business to Vientikivi Oy Finland on 30 June 2011. A separate
release on the sale has been published today. 

 By centralising its operations, the Tulikivi Group is divesting its smaller,
clearly unprofitable businesses that are outside its core business, thus
releasing a significant amount of working capital for its core businesses. The
divestment of the utility ceramics business and the Taivassalo building stone
business will result in extra expenses of EUR 0.5 million during the current
financial year, including a restructuring provision of EUR -0.4 million,
impairment losses and other expense reserves of EUR -0.3 million, and sales
profits of EUR 0.2 million.  Due to the centralisation measures, the Group´s
personnel diminished by 50 persons. 





TULIKIVI CORPORATION



Heikki Vauhkonen
Managing Director





Distribution: NASDAQ OMX Helsinki Ltd, key media, www.tulikivi.com



Further information: Tulikivi Corporation, FIN-83900 Juuka, Finland, tel. +358
(0)207 636 000, www.tulikivi.com 

- Managing Director Heikki Vauhkonen