Metso concludes employee negotiations at its Automation business line in Finland

HELSINKI, Oct. 5, 2009 (Press Release) - Metso has today concluded the employee negotiations, which started in August, in its Automation business line. As a result of the negotiations, there will be 98 permanent personnel reductions. Primary affections are targeted to the units in Helsinki, Tampere and Kajaani. The negotiations affected the entire personnel of the Flow Control business unit, which manufactures industrial valves, and Automation business line's shared administration and support functions. In the Process Automation Systems business unit the negotiations primarily targeted the personnel serving the paper and pulp customers in Finland. At the beginning of the negotiations it was estimated to result in the reduction of a total of some 120-160 permanent positions.

Additionally, the temporary lay-off negotiations in the Flow Control business unit were ended. Part of the temporary layoffs will be implemented immediately and another part at the beginning of next year, depending on the workloads. Temporary layoffs will be implemented using various methods and they will be expired if possible at the end of November 2010, at the latest. The temporary layoffs will affect mainly to personnel in Helsinki.

The primary reason for the adjustment need is the reduced demand resulting from the permanent structural change in the paper and pulp industry as well as the postponements of investments by energy industry customers in virtually every market area as a result of the global economic crisis. Strong order backlog has kept the workload in the Flow Control business unit relatively good until this summer but weak level of new orders during the first half of the year has decreased the workload clearly to lower level. Customers' decision-making has an effect on the unit's workload after the time frame from 9 to 12 months. The personnel negotiations aim to adjust operations to meet the needs of our customer industries. Operations will be adjusted to correspond to the decreased demand also by reducing the use of temporary and leased labor.

Metso's Automation business line employs a total of over 1,500 people in Finland in 21 locations; its biggest sites are located in Helsinki and Tampere.