VANTAA, Finland, Feb. 7, 2006 (PRIMEZONE) -- Sweeping structural changes that began in the manufacturing services for the telecommunications industry in spring 2005 are continuing. The demand for the manufacturing services of mobile phone mechanics is centralising in lower-cost countries and close to the fastest-growing markets in Asia and Central America.
Perlos has maintained its position as the world's largest supplier of mobile phone mechanics by adapting its capacity to match demand. In 2005, operations were expanded in Hungary and China, and the construction of a new plant commenced in Mexico. At the same time, the downscaling of capacity in Finland was initiated.
Perlos will continue to adapt its production to match demand and will start up measures to revitalise loss-making operations in high-cost countries the United States and Finland.
Operations at the Fort Worth plant in Texas are in the red. Perlos will immediately take steps to wind down functions in Texas and transfer the production to the Reynosa plant in Mexico by the end of the second quarter. The Texas plant employs approximately 1,250 persons including temporary workers. The transfer seeks to achieve annual savings of about EUR 15 million.
A rationalisation programme will be kicked off in Finland with a view to achieving annual savings of approximately EUR 25 million as from the beginning of 2007. The company seeks to achieve the savings target by boosting operational efficiency, and downscaling the number of personnel will also be investigated as one alternative. The required reduction of permanent personnel is preliminarily estimated to amount to 600 persons. Personnel representatives have today been invited to participate in co-determination negotiations.
The winding down of the Ylojarvi plant's operations that were initiated in spring 2005 have progressed according to plans. The plant will be closed down by the end of March 2006.
At the end of 2005, Perlos had approximately 12,900 employees including temporary employees. The number of personnel in Finland amounted to 3,000, of which approximately 2,700 were permanent employees.
Additional information:
-- A news conference for analysts and media will be held today, February 7, 2006 at 9:00 in Restaurant G.W. Sundmans, address: Etelaranta 16, Helsinki. Welcome.
-- CEO Isto Hantila, tel. +358 9 2500 7200, and CFO Juha Torniainen, tel. +358 9 2500 7218 are available today, February 7, at 13:00 -- 14:30 Finnish time.
-- Perlos will arrange a conference call and web presentation for analysts, media and investors today February 7, 2006, at 8.00 A.M. U.S. Eastern time / 1.00 P.M. U.K. time / 3.00 P.M. Finnish time. You can participate over the telephone or through Perlos' Internet site. The results will be presented by Mr. Isto Hantila, CEO. The conference call and presentation will be held in English. To participate in the conference call, please dial +44 (0) 207 162 0025, using the code "Perlos", a few minutes before the beginning of the conference.
-- More detailed information on Perlos' personnel and factory floor space is available at www.perlos.com, section Info Centre.
PERLOS IN BRIEF
Perlos Corporation, headquartered in Finland, is a global supplier for the telecommunications, healthcare, electronics and automotive industries. The company focuses on the design, manufacture and assembly of mechanical and electronic modules with strict requirements on accuracy and quality.
The Group's net sales in 2005 were EUR 666.8 million. Including temporary workers, Perlos had 12,889 employees. Perlos has operations in Brazil, China, Finland, Hungary, Japan, Mexico, Singapore, Sweden, Taiwan, the U.K. and the USA. Perlos' share is listed on the Main List of the Helsinki Stock Exchange.