Componenta - Company Announcement

Statutory negotiations concluded - Componenta to merge Pietarsaari foundry with Pori foundry

Componenta Corporation   Stock Exchange Release 13.11.2013 at 16.10

Componenta's statutory personnel negotiations that began on 30 September 2013
at the Pietarsaari foundry have been completed. As a result, it has been
decided to transfer the small DISA production line to the Pori foundry and
close down the Pietarsaari foundry. The decision and measures to be taken
accordingly are related to the efficiency programme ongoing at Componenta to
improve the capacity utilization rate of the iron foundries by concentrating
production at larger units. 

This decision will have an impact on personnel, and the jobs of a maximum of
110 people will be phased out gradually at the Pietarsaari foundry by the end
of October in 2014. During the close down period the foundry will employ 70 -
110 people. 

One-time costs and write-downs in the balance sheet will total some EUR 2
million during 2013 and 2014 and the annual savings achieved will be about EUR
2 million. Capital expenditure during the project will be about EUR 1 million. 

The transfers of the small DISA production line and production from Pietarsaari
to Pori will improve the capacity utilization rate at the Pori foundry and
strengthen its position as a flexible and competitive supplier to Nordic
customers. The transfer of production has a positive impact on employment at
the Pori foundry. At present about 175 people work in Pori foundry, and the
estimated increase will be about 40 people. 

The transfer of the production line and the close down of the Pietarsaari
foundry do not affect Componenta Corporation's engineering personnel in
Pietarsaari nor the Componenta Pistons business unit which operates in
Pietarsaari. These operations at present employ altogether 42 people. In
addition, the ongoing investment at the Pistons unit to increase its production
capacity is estimated to have a positive impact on personnel of about 10
persons. 

Helsinki, 13 November 2013

COMPONENTA CORPORATION


Heikki Lehtonen
President and CEO



For further information, please contact:

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 545 million in 2012 and its share is listed on
the NASDAQ OMX Helsinki. The Group employs approx. 4,300 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.

Attachments:

release_13112013_Componenta to merge Pietarsaari with Pori foundry.pdf