Rapala VMC - Inside information

RAPALA VMC CORPORATION: CODETERMINATION NEGOTIATIONS COMPLETED.

Rapala VMC Corporation
Stock Exchange Release
April 6, 2017 at 11:00 a.m.
RAPALA VMC CORPORATION: CODETERMINATION NEGOTIATIONS COMPLETED.



Rapala  VMC Corporation announces the completion of codetermination negotiations
concerning  Finland.  Beginning  of  the  negotiations was published on February
16, 2017. In  Rapala lure factory in Vääksy the negotiations covered to transfer
parts  of production to Group's factories in Russia and Estonia. Correspondingly
the  transfer of  production together  with Group's  declined profitability also
lead  to reorganization of the work  of white-collar personnel in Vääksy factory
as well as in the Helsinki headquarters. The aim of the negotiations was to find
solutions where the number of Rapala VMC Corporation's employees is in line with
scope and profitability of current operations.



The  total number of employees affected by codetermination negotiations is 50 of
which  five  are  covered  with  pension  arrangements. The originally estimated
amount  was approximately 45-53 employees in Rapala VMC Oyj in Finland. Employee
reductions   relating   to   the  codetermination  negotiations  of  Rapala  VMC
Corporation  start on spring 2017. Rapala VMC Corporation is actively supporting
the  employees affected through a change package that includes training and help
with re-employment.



Marttiini  Oy  knife  factory's  ongoing codetermination negotiations concerning
duplicate  production functions in Rovaniemi  and Pärnu, Estonia, factories have
not  yet been  completed. This  planned reorganization  of production could mean
maximum of 10 employees reduction in Rovaniemi.



The  aim of the planned Finnish restructurings  is to have about 1.5 MEUR annual
savings  which  will  be  realized  on  2018. Non-recurring costs related to any
personal  reductions, which are  recorded in the  year 2017, are estimated to be
about 0.2 MEUR.



Helsinki, April 6, 2017



RAPALA VMC CORPORATION

Jussi Ristimäki

Chief Executive Officer





For further information, please contact:



Rapala Group:

Jussi Ristimäki, Chief Executive Officer, tel. tel. +358 40 700 1344

Olli Aho, Investor Relations, tel. +358 9 7562 540



Rapala factory:

Arto   Nygren,   Executive   Vice   President   -  Lure  Manufacturing,  tel.  +
358 40 5058 998



Distribution: Nasdaq Helsinki and main media



Rapala VMC Corporation ("the Group") is a leading fishing tackle company and the
global  market leader in fishing lures,  treble hooks and fishing related knives
and  tools.  The  Group  also  has  a  strong  global  position in other fishing
categories  and it is  one of the  leading distributors of  outdoor, hunting and
winter  sport  products  in  the  Nordic  countries.  The  Group has the largest
distribution  network  in  the  industry.  The main manufacturing facilities are
located  in Finland,  France, Estonia,  Russia, Indonesia  and the UK. The Group
brand  portfolio includes the  leading brand in  the industry, Rapala, and other
global  brands  like  VMC,  Sufix,  Storm,  Blue  Fox,  Luhr Jensen, Williamson,
Dynamite  Baits, Mora Ice, StrikeMaster, Marttiini and Peltonen. The Group, with
net sales of EUR 261 million in 2016, employs some 2 800 people in 40 countries.
Rapala VMC Corporation's share is listed and traded on the Nasdaq Helsinki stock
exchange since 1998.


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Attachments:

Rapala VMC Corporation Stock Exchange Release April 6, 2017.pdf