2015-07-14 11:30:00 CEST

2015-07-14 11:30:02 CEST


SÄÄNNELTY TIETO

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Componenta - Company Announcement

Componenta will combine production of large cast components in the Netherlands with Ferromatrix in Belgium


Componenta Corporation    Stock Exchange Release 14.7.2015 at 12.30

Componenta Corporation and Michel Van de Wiele NV, the owner of Ferromatrix NV,
have agreed to combine and concentrate their production of large furan cast
components into one foundry in Kortrijk, Belgium subject to all customary
approvals. Ferromatrix NV is a highly automated furan foundry with the focus on
large cast components and belongs to Van de Wiele Group, a world wide leader in
carpet and textile machines.  By doing so, the parties will create one
efficient unit for production and sales of large furan components operating at
high capacity utilization rate. 

Componenta and Ferromatrix NV will establish a 50/50 joint venture company,
which will from 1 January 2016 onwards, specialize in sales of large furan cast
components. In a second phase, subject to certain conditions, Componenta has a
possibility to become a minority shareholder of Ferromatrix with 40%
shareholding and in connection with this transaction, the joint venture sales
company's shareholding will change so that Componenta will own 60% of it and
Van de Wiele 40%. The second phase is planned to be carried out in 2017. 

Componenta's wide customer service network will be responsible for the sales of
large furan cast components and customer cooperation. Ferromatrix will also
direct its third party sales through the joint venture sales company.
Ferromatrix will be solely responsible for the production of combined large
furan cast components. 

The production cooperation with Ferromatrix is related to Componenta's measures
to improve the capacity utilization rates of the production lines and to
concentrate the production operations into larger units. As a consequence, the
furan foundry line in Heerlen, the Netherlands will be closed down by the end
of 2015. Componenta will continue producing hand moulded furan castings at the
Suomivalimo foundry in Iisalmi, Finland, serving the Nordic customers. 

As part of Componenta's efficiency improvement program the greensand line of
Weert foundry is planned to be transferred to Heerlen during second half of
2016. In the future the Heerlen foundry will operate two greensand lines. As a
consequence of planned transfer Weert foundry will be closed down by the end of
2016 and all Componenta's operations in the Netherlands will be consolidated in
the Heerlen unit. 

These measures will have an impact on personnel of Componenta's Dutch
operations which means a gradual reduction of approximately 140 employees by
the end of October 2016. Currently Componenta employs approximately 435
employees in the Netherlands excluding leased personnel. 

The cost savings and other benefits based on these announced measures are
estimated to be approximately EUR 6 million annually and be gradually achieved
by the year 2017. One-time costs are estimated to be EUR 9 million and
write-downs in the balance sheet EUR 3 million during 2015 - 2016. 

Closing down the Heerlen furan line and starting the cooperation with
Ferromatrix are expected to bring positive effects already in 2016. Changes to
be made are part of Componenta's efficiency improvement program and strategic
measures to improve production efficiency, profitability and competitiveness.
The cost synergies created by the measures together with our engineering
expertise and diverse production capabilities will strengthen Componenta's
position as a significant global provider of high quality cast components and
casting solutions. 

Helsinki, 14 July 2015

COMPONENTA CORPORATION


Heikki Lehtonen
President and CEO





For further information, please contact:

Componenta Corporation

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 495 million in 2014 and its share is listed on
Nasdaq Helsinki. The Group employs approx. 4,250 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.