Kemira Oyj - Company Announcement

Kemira has concluded co-determination negotiations in Finland

Kemira Oyj
Stock exchange release
October 11, 2012 at 12:30 pm (CET+1)

Kemira's co-determination negotiations in Finland have been concluded. The
negotiations concerned Kemira's sites in Helsinki, Espoo, Oulu, Sastamala,
Kuusankoski, Joutseno, Vaasa and Harjavalta.

In the beginning of the negotiations it was estimated that the personnel
reductions may affect approximately 260 employees' working in Finland. As a
result of the negotiations, the head count reduction will be 152 in Finland, out
of whom 79 persons will leave the company through pension schemes. Kemira will
continue analyzing the outsourcing opportunities. The terminations will be
carried out by the end of October. Kemira will support the affected employees by
providing outplacement services which aim at re-training and re-employment.

The personnel reductions are related to the restructuring program "Fit for
Growth" announced in July. The program aims to improve the company's
profitability, internal efficiency and to accelerate growth in the emerging
markets. The expected EUR 60 million cost savings impact of the program will
occur as follows: EUR 10 million in 2012, EUR 50 million in 2013 and EUR 60
million in 2014. The ultimate goal of the program is to reach at least 10% EBIT
margin in 2014. Redundancies will account for 50% of the expected savings. The
targeted cost savings for Kemira's sites in Finland will be achieved with fewer
redundancies than originally anticipated.

The expected restructuring charges connected to the program amount to EUR 85
million of which EUR 35 million will be cash cost and EUR 50 million being
write-downs. EUR 55 million of the restructuring charges will be booked in the
second half of 2012, and the balance in the first half of 2013.

The organizational restructuring also affects Kemira's sites outside of Finland
and the negotiations in the sites affected by the possible personnel reductions
will be completed in each country according to the local legislation.


For more information, please contact
Kemira Oyj
Jukka Oinonen
Vice President, Human Resources, Finland
Tel. +35810 862 1006

Leena Lie
Senior Vice President, Communications & Public Affairs

Tel. +35810 862 1153


Kemira is a global over two billion euro water chemistry company that is focused
on serving customers in water-intensive industries. The company offers water
quality and quantity management that improves customers' energy, water, and raw
material efficiency. Kemira's vision is to be a leading water chemistry company.

www.kemira.com
www.waterfootprintkemira.com

[HUG#1648272]

Attachments:

Link to the release (Pdf).pdf