Marimekko - Company Announcement

MARIMEKKO INITIATES STATUTORY EMPLOYER-EMPLOYEE NEGOTIATIONS REGARDING ITS OPERATIONS IN SULKAVA AND KITEE: the intention is to secure business competitiveness

Marimekko Corporation, Stock Exchange Release, 21 March 2013, at 10:00 AM

Marimekko Corporation starts statutory employer-employee negotiations on
potential permanent staff reductions concerning the personnel of its
manufacturing operations located in Sulkava and Kitee, Finland as well as the
adjacent factory outlets. The negotiations relate to the possible closure of
Marimekko's production plants in Sulkava and Kitee. The personnel of
Marimekko's textile printing factory in Helsinki will not be affected by these
negotiations. The closure of the production plants and factory outlets could
result in a permanent reduction of 60 employees at the most. 

Mika Ihamuotila, President and CEO: “The aim of these planned actions is to
secure the future competitiveness of our business. We are proud of our Finnish
roots and it is important for us that our products are designed and to some
extent also made in Finland. We plan to concentrate our in-house manufacturing
in the production plant located in the Herttoniemi district of Helsinki. In
recent years, we have devoted particular effort to developing the operations of
our textile printing factory as it supports our product development and our
pioneering work in pattern design, thus giving us a significant competitive
edge. I am firmly convinced that the planned actions will make it possible to
manufacture more competitive products, thus creating better opportunities to
employ personnel in Finland in the areas of product development, design,
marketing and sales. Marimekko's personnel engaged in these functions in
Finland has strongly increased in recent years. In spite of uncertainty in the
global economy, we intend to continue our long-term efforts aimed at
international growth in line with our strategy, and in order to achieve our
goals we must devote particular attention to the profitability and
cost-efficiency of our operations.” 

During the negotiations, it will also be determined whether the possible
reductions to be effected can be compensated for by transfers within the Group
or by using pension or other special arrangements. At the end of 2012,
Marimekko had a total of 535 employees, 432 of whom worked in Finland. At the
end of the year there were 60 employees working at the production plants in
Sulkava and Kitee and the adjacent factory outlets. 

Further information: President and CEO Mika Ihamuotila, tel. +358 9 758 71


MARIMEKKO CORPORATION
Corporate Communications

Merja Paulamäki
Tel. +358 9 758 7473
merja.paulamaki@marimekko.fi


DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media

Marimekko is a Finnish textile and clothing design company renowned for its
original prints and colours. The company designs and manufactures high-quality
interior decoration items ranging from furnishing fabrics to tableware as well
as clothing, bags and other accessories. When Marimekko was founded in 1951,
its unparalleled printed fabrics gave it a strong and unique identity.
Marimekko products are sold in approximately 40 countries. In 2012, brand sales
of Marimekko products worldwide amounted to approximately EUR 187 million and
the company's net sales were EUR 88 million. The number of Marimekko stores
totalled 108 at the year end. The key markets are North America, Northern
Europe and the Asia-Pacific region. The Group employs around 500 people. The
company's share is quoted on NASDAQ OMX Helsinki Ltd. www.marimekko.com