Okmetic Oyj - Company Announcement

Okmetic focuses on its core business and closes down its epi plant in the United States

OKMETIC OYJ        STOCK EXCHANGE RELEASE     9 DECEMBER 2015       AT 8.00 A.M.


OKMETIC FOCUSES ON ITS CORE BUSINESS AND CLOSES DOWN ITS EPI PLANT IN THE UNITED
STATES

Okmetic has decided to phase out of its epitaxial deposition business and close
down its Allen plant located in the United States that is focused on epitaxial
deposition of silicon wafers. The facility will be wound down gradually by the
end of 2016. The closure of the unit, which has become unprofitable, will
improve the company's operating profit and cash flow after the wind-down, and
will also free up capital for other key strategic projects.

"In accordance with its strategy, the company focuses on high value-added
silicon wafers, which it supplies for the manufacture of sensors, discrete
semiconductors and analog circuits. The aim is to increase the company's
relative and absolute profitability in the long run, and the decision to close
the Allen production facility is in line with this aim", says President Kai
Seikku.

The long phase-out period will ensure that we are able to support customers
through this transition. Changing to a new epi supplier can take up to a year,
during which time the company wants to secure the operation of customer supply
chains. Okmetic will do its very best to ensure that the wind-down of the plant
impacts the customers as little as possible. The company draws up customer
specific plans for supporting their business and helps them find alternative
suppliers.

In connection with the wind-down of the plant, 3.0 million euro will be entered
as non-cash impairment loss and provisions in the final quarter of 2015.
Okmetic's outlook and financial guidance for 2015 remain unchanged.

Okmetic acquired the Allen plant in 1999. It further processes the silicon
wafers manufactured at the company's plant in Vantaa, Finland by making an
epitaxial deposition on the surface of the wafers. In 2014, the net sales of the
Allen facility amounted to 11.1 million euro. The closure of the plant will
affect 39 employees. The company will support them with redundancy packages and
help them find new employment. The closure will not affect the organisation of
US sales and customer support, which will continue at its present strength.
Okmetic will continue to invest strongly in its growth and presence in the North
American market.

"I want to thank the personnel of the Allen facility for their hard work and
commitment to the company's goals over the years. I would like to thank our
customers for the trust they have shown in the company. The closure of the plant
is unfortunate but necessary since the prerequisites for profitable business are
no longer fulfilled. As a result of the Allen plant closure, the company will be
able to serve its customers better than ever in its core business", says Kai
Seikku.


OKMETIC OYJ

Kai Seikku
President


For further information, please contact:

President Kai Seikku (from 2 p.m. EET onwards)
tel. +358 9 5028 0232, email: kai.seikku@okmetic.com

Senior Vice President, Finance, IT and Communications Juha Jaatinen
tel. +358 9 5028 0286, email: juha.jaatinen@okmetic.com

Senior Vice President, Customers and Markets Anna-Riikka Vuorikari-Antikainen
tel. +358 9 5028 0461, email: anna-riikka.vuorikari-antikainen@okmetic.com



Okmetic supplies tailored, high value-added silicon wafers to be used in the
manufacture of sensors as well as discrete semiconductors and analog circuits.
Okmetic's strategic objective is profitable growth driven by a product portfolio
designed to meet customers' current and future technology needs. The core of the
company's operations is being genuinely close to the customers and understanding
their needs and processes.

Okmetic's global sales network, extensive portfolio of high value-added
products, in-depth knowledge of crystal growing, long-term product development
projects, as well as efficient and flexible production create prerequisites for
achieving the strategic targets. The company's headquarters is located in
Finland, where the majority of the company's silicon wafers is manufactured. In
addition to in-house manufacture, Okmetic has contract manufacturing in Japan
and China. Okmetic's shares are listed on Nasdaq Helsinki Ltd under the code
OKM1V. For more information on the company, please visit our website at
www.okmetic.com.


[HUG#1972244]

Attachments:

Okmetic is phasing out of epi business.pdf