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2012-05-29 08:55:00 CEST 2012-05-29 08:55:02 CEST REGULATED INFORMATION Cencorp - Company AnnouncementCENCORP EXITS FROM DECORATION BUSINESS AND CLOSES DOWN ITS PLANT IN GUANGZHOU, CHINACencorp 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. |
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