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Fortum Oyj to Discontinue Electricity Production at Inkoo Power Plant in Finland; to Cut Jobs

Tuesday, 13 Aug 2013 02:19am EDT 

Fortum Oyj announced that it has decided to discontinue electricity production at its Inkoo coal-fired power plant in Finland. Production operations will end in February 2014, after which the Company will mothball three units. As a consequence of the decision to cease production, the Company will book an impairment loss of approximately EUR 25 million in the Power division’s third quarter results. Approximately 80 jobs will be cut from the Inkoo power plant by February 2014 at the latest. On June 12, 2013, the Company started employee negotiations that affected all power plant personnel. The employee negotiations ended on July 24, 2013. Approximately 90 employees work at the power plant. The decision is based on the weak profitability of the Inkoo power plant. The demand for coal condensing power in the Nordic power market has decreased as a result of the economic recession and the drop in the wholesale price for electricity. Consequently, the power plant’s utilization rate has been low in recent years. The requirements of the EU’s Industrial Emissions Directive (IED) will further burden the profitability of old coal-fired power plants. The decision to cease production operations was preceded by a study that assessed the future alternatives for the Inkoo coal-fired power plant. The other two alternatives were to continue the current operations or to partially close the power plant. 

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