Suominen Oyj - Company Announcement

SUOMINEN CORPORATION TO IMPROVE EFFICIENCY AND BEGIN CODETERMINATION NEGOTIATIONS

Tampere, 2012-05-14 08:30 CEST (GLOBE NEWSWIRE) -- Suominen Corporation        
           Stock exchange release 14.5.2012 at 9.30 a.m. 


Suominen Corporation to improve efficiency and begin codetermination
negotiations 

Within the framework of the previously announced performance improvement
programme, Suominen Nonwovens Ltd. will begin codetermination negotiations on
14 May 2012. Suominen Nonwovens Ltd is a subsidiary company fully owned by
Suominen Corporation belonging to Suominen's Wiping business area. The
negotiations will affect all 166 employees at Suominen Nonwovens Ltd. The
reduction need is estimated to be 85 employees. 

Suominen became a global market leader in nonwovens for wipes when the company
bought Ahlstrom Corporation's Home and Personal business. Thanks to the
acquisition, the Nonwovens Business Unit turnover nearly quadrupled and the
number of production facilities grew from one to seven. Suominen Nonwovens
Ltd's production facility in Nakkila produces nonwovens for wiping, hygiene and
wound care. In addition to the Nakkila site, Suominen produces nonwovens in
North America, Italy, Spain and Brazil (the Brazilian transfer is estimated to
take place during the second quarter). 

In order to optimize its production structure, Suominen has analyzed its
production facilities from a market standpoint. The analysis initiated the need
to assess the production structure and sharpen the role of the unprofitable
operations at the Nakkila unit. 

” We intend to strengthen our position as a global market leader in nonwovens.
Therefore we must continuously streamline our operations and our ability to
supply our customers with precisely what they need”, says President and CEO
Nina Kopola. 

Suominen's most important short-term objective is to improve its profitability.
Therefore the company has launched a performance improvement program. The
target is to achieve cost savings of the order of about two percentage points
on net sales. 

Helsinki, 14 May 2012


Suominen Corporation


Nina Kopola
President and CEO

For additional information, please contact
Mrs. Nina Kopola, tel. +358 (0)10 214 3551

Suominen supplies industry and retailers with nonwovens  wet wipes, , and
flexible packaging for use in consumer products that people us every day -
through two business areas: Wiping and Flexibles. 


Distribution:
NASDAQ OMX Helsinki Ltd.
Main media
www.suominen.fi