OUTOTEC OYJ PRESS RELEASE JANUARY 4, 2016 at 1.00 PM
Outotec completes employee cooperation negotiations in Finland
Outotec has completed employee cooperation negotiations about the restructuring and possible reduction of workforce in Finland. At the beginning of the negotiations on November 20, 2015, the estimated need for reduction was maximum 160 permanent jobs. As a result of the negotiations, Outotec will reduce in total 150 jobs in Finland, of which 105 permanent jobs through redundancies and the rest through other arrangements, such as non-renewal of fixed-term contracts, retirement arrangements and voluntary leavers.
Due to reduced workload and restructuring, jobs will be reduced in almost all Outotec locations in Finland, most in Espoo and Lappeenranta. Most of the reductions will be completed by the end of January 2016. Outotec offers financial support as well as training programs to support re-employment and entrepreneurship for the persons made redundant.
Outotec will also adjust the production capacity during 2016 through temporary lay-offs in the Turula and Lappeenranta units. Possible temporary lay-offs in other locations depend on the development of the market environment and Outotec's order intake.
In addition to personnel reduction and temporary lay-offs, significant savings will be achieved through reducing the use of external contractors by approximately 120 person-years in Finland.
The measures are part of Outotec's global cost structure program targeting EUR 70 million annualized savings in fixed costs (announced on November 20, 2015).
For further information please contact:
Pertti Korhonen, CEO
Tel. +358 20 529 211
Jari Ålgars, CFO
Tel. +358 20 529 2007
Eila Paatela, Director - Corporate Communications
Tel. +358 20 529 2004, mobile +358 400 817198