Cencorp - Company Announcement

CENCORP EXITS FROM DECORATION BUSINESS AND CLOSES DOWN ITS PLANT IN GUANGZHOU, CHINA

Cencorp Corporation     Stock exchange release  29 May 2012 at 09:55 Finnish
time 

CENCORP EXITS FROM DECORATION BUSINESS AND CLOSES DOWN ITS PLANT IN GUANGZHOU,
CHINA 

According to the strategy updated in April, Cencorp Corporation focuses on the
most profitable and growing product groups in the special component
manufacturing. Due to this, the company has decided to exit from the decoration
business and close down the plant in Guangzhou, China, producing decoration
applications. Decoration business has recently made heavy losses. The operating
loss in 2011 was EUR 2.8 million and in the first quarter this year EUR 0.9
million. No quick solution to improve the profitability has been found. 

Cencorp's decoration business includes, among others, chemical or laser etching
of metal parts, metal and optical coatings, various decorative prints and
digital image transfer decorations. Decoration business has been part of
Cencorp's Special Components segment. 

“According to our updated strategy, decoration business no longer is part of
the company's core business. In the Special Components segment, the company is
aiming for growth especially in manufacturing of flexible circuits, fuel cells
and components for other renewable energy technologies. Manufacturing of these
products is the main focus of Cencorp's Beijing plant,” says Iikka Savisalo,
President and CEO of Cencorp. 

The Guangzhou plant will be ramped down as soon as possible so that costs for
the Cencorp Group can be minimized. Cencorp is preserving all IPRs
(intellectual property rights) it has used related to the decorations.  Closing
down the Guangzhou plant will decrease the number of Cencorp's personnel by
some 110 people. Operations at Cencorp's Beijing plant continue normally. 

Cencorp Oyj neither Savcor Face (Beijing) Technologies Co. Ltd. operating in
Beijing has no business, guarantees or other liabilities for the Guangzhou
company, Savcor Face (Guangzhou) Technologies Co., Ltd. 

Cencorp Corporation

Iikka Savisalo
President and CEO

Further information:
Hannu Savisalo, Chairman of the Board, tel. +358 50 2688,
hannu.savisalo@savcor.com 

Distribution:
NASDAQ OMX, Helsinki
Main media
www.cencorp.com


Cencorp Corporation is a leading provider of industrial automation solutions.
The equipment included in the product portfolio designed for depaneling,
odd-form assembly, testing and laser materials processing substantially
improves the efficiency of customers' production. The product range also
includes EMI shielding solutions, flexible circuits, decorations and RFID
antennas. Cencorp's customers are automotive electronics manufacturers and
manufacturers operating in telecommunications, industrial automation and EMS.
Cencorp's head office is located in Mikkeli, Finland. The company is part of
the Finnish Savcor Group.