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Metso continues adjusting its operations in Finland

HELSINKI, FINLAND -- (Marketwire) -- 11/15/12 --

Metso Corporation's press release, November 15, 2012, 09:30 local time

Metso will initiate employee negotiations in its different businesses. The negotiations are estimated to lead to the reduction of a total of about 160 jobs in Finland. Additionally, the company is preparing for a temporary decline in demand with temporary lay-offs.

The goal of the employee negotiations is to adjust the company's production capacity to correspond with the permanent structural changes in the operating environment and to improve long-term cost competiveness and profitability.

"In addition to securing long-term profitability and competitiveness, we must also react on the temporary decline in demand. We will respond to this challenge with temporary lay-offs. Through the negotiations being initiated, we will seek solutions in good cooperation with the personnel," says Matti Kähkönen, President and CEO of Metso.

The target of the employee negotiations is to achieve annual savings of approximately EUR 8 million. It is estimated that the cost reductions will be implemented in full as of the fourth quarter of 2013.

Personnel reductions

The estimated reduction need in the Automation business is about 120 jobs. The reduction need covers nearly all Automation's functions in Finland. Automation's biggest sites are in Vantaa, Tampere and Kajaani.

The reduction need in Mining and Construction's Tampere foundry is estimated to be about 30 jobs.

In Metso's HR Services unit, the reduction need is estimated to be about 10 jobs around Finland.

Temporary lay-offs

Mining and Construction's crushing and screening equipment manufacturing and foundry in Tampere is preparing for temporary lay-offs that will cover the entire personnel of about 610.

Automation is also preparing for temporary lay-offs. The functions in Vantaa and Tampere, employing about 630 people, are subject to employee negotiations concerning temporary lay-offs.

The units in Pori that serve the pulp industry and the Power business line manufacturing units in Tampere will initiate employee negotiations concerning temporary layoffs. The negotiations will cover all the personnel in these units, approximately 180 people in Pori and approximately 150 people in Tampere.

The extent and duration of the lay-offs will depend on the work load and on the volume of orders received.

Metso is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. Our 30,000 professionals based in over 50 countries deliver sustainability and profitability to customers worldwide. Expect results.

www.metso.com, www.twitter.com/metsogroup

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Metso Corporation via Thomson Reuters ONE

[HUG#1658246]

For further information, please contact:

Harri Nikunen
Chief Financial Officer
Metso Corporation
Email Contact
tel. +358 20 484 3010

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