Componenta Oyj Concludes Statutory Negotiations at Pietarsaari Foundry; to Shut Down Production Line and Cut Jobs

Componenta Oyj announced that its statutory personnel negotiations at the Pietarsaari foundry have been completed. As a result, it has been decided to shut down the bigger production line at the foundry by the end of September 2013. The factors resulting in this decision were that the capacity utilization rate at the foundry and its profitability have remained poor for a long time. Most of the products made on the production line that is being shut down will be transferred to the Group's Orhangazi foundry in Turkey, some of them to the smaller line at the Pietarsaari foundry and some to the Group's Pori foundry. This decision will have an impact on personnel, and the jobs of a maximum of 100 people will be phased out at the Company's Pietarsaari foundry during 2013, through retirement schemes and redundancies. The Pietarsaari foundry employs approximately 170 people. One-time costs from shutting down the production line at the foundry will be approximately EUR 2 million in 2013 and the write-down of operations at approximately EUR 1 million. The planned product transfers will improve capacity utilization rates at the Orhangazi and Pori foundries and will help improve their employment situation. The net reduction in jobs in Finland is estimated to be approximately 80 people. The shutdown of the production line and the personnel reductions do not affect the Pistons business unit that operates in Pietarsaari or the Company’s engineering personnel located in Pietarsaari.