Metso initiates reductions of workforce in its Fiber business line in Karlstad, Sweden

Published Nov 18, 2008 15.00.00 +2 GMT

Metso will start personnel discussions regarding the redundancy of 40 persons at their Fiber business line units in Karlstad, Sweden.

The turmoil in the global economy has led to a changed market environment for the pulp and paper industry, creating a weaker demand for Metso's products and services. The company must therefore adjust its capacity accordingly. Operations need to be downsized and made more flexible to handle changes in the market.

The reductions will commence in the end of 2008. The trade unions and affected members of the staff have today been informed about the planned changes and reduction of workforce. The one-time costs related to these arrangements are not expected to be material for Metso.

As a first measure, Metso is also making significant reductions in the use of external labor.

Metso's Fiber business line units in Karlstad employ a total of 245 persons. They supply pulp industry customers with machinery, equipment and spare parts, as well as aftermarket and expert services. Altogether Metso employs more than 3,100 people in Sweden.

Metso is a global engineering and technology corporation with 2007 net sales of over EUR 6 billion. Its over 27,000 employees in approximately 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. www.metso.com

For more information, please contact:

Erik Kornfeld, General Manager, Metso Fiber Karlstad Tel. +46 70 38 32 284 (in Swedish and English)

Kari Tallqvist, Vice President, Human Resources, Fiber business line Tel. +46 70 557 57 43 (in Finnish, Swedish and English)