Lemminkäinen - Company Announcement

Lemminkäinen to inititate negotiations to reduce personnel

LEMMINKÄINEN CORPORATION   STOCK EXCHANGE BULLETIN   18 OCTOBER 2011 AT 10:00 AM



LEMMINKÄINEN TO INITITATE NEGOTIATIONS TO REDUCE PERSONNEL

Lemminkäinen is enhancing its operational efficiency to improve its
profitability and competitiveness. Despite increased order book, the company's
profitability has not improved according to targets set. Furthermore, the
general economic conditions have weakened. 

On Monday 10 October 2011, Lemminkäinen announced its specified strategic focus
and the launch of a corporate-wide efficiency programme. The programme strives
to generate permanent cost savings of EUR 50 million annually from 2013
onwards. Savings of approximately EUR 30 million are sought through more
efficient procurement. Savings of some EUR 20 million are targeted, for
example, through more efficient operating methods, processes, operating network
and organizational and management structures. Lemminkäinen estimates that
approximately half of the savings will be achieved in 2012. 

As part of the efficiency programme, Lemminkäinen is initiating negotiations
with its personnel groups regarding more efficient operating methods as well as
potential personnel and cost cuts. The negotiations will affect the entire
Lemminkäinen Group in Finland and in other operating countries. 

The personnel negotiations regarding the Finnish operations will start on 24
October 2011. In other operating countries the negotiations will be initiated
in accordance with local laws and regulations and if possible, according to the
same schedule as in Finland. Lemminkäinen estimates the total personnel
reduction need in the entire group to be 300 man-years at most. The
negotiations aim to identify alternative adjustment measures to personnel
reductions. 

The company employs approximately 8,000 personnel, 70 per cent of whom work in
Finland. 

LEMMINKÄINEN CORPORATION
Corporate Communications

ADDITIONAL INFORMATION:
Timo Kohtamäki, President and CEO
Lemminkäinen Corporation
Tel. +358 2071 53263


DISTRIBUTION
NASDAQ OMX Helsinki Oy
Key media
www.lemminkainen.com



Lemminkäinen Group operates in all areas of the construction sector. The
Group's business sectors are Building Construction, Infrastructure Construction
and Technical Building Services. A fourth business sector, International
Operations, will be introduced at the beginning of 2012. Net sales in 2010 were
around EUR 2.0 billion, of which international operations accounted for roughly
a quarter. The Group employs 8,000 people on average. Lemminkäinen
Corporation's shares are quoted on NASDAQ OMX Helsinki Ltd.
www.lemminkainen.com