STOCK EXCHANGE RELEASE
December 13, 2007
As part of the restructuring and development of its lure
manufacturing operations in Europe, Rapala VMC Corporation ("Rapala")
has informed the labour representatives of its lure factory in
Ireland about plans to close the factory. Accordingly, the
manufacturing operations in Ireland will end by next summer.
The manufacturing functions of the Irish factory will be taken over
by the Group's lure factory in Estonia that will continue finalizing,
testing and packaging the products. At the same time, significant
part of assembly work is being transferred from Estonian factory to
Rapala lure factory in Russia, established earlier this year. The
ramp-up of the Russian factory is proceeding on plan, and both the
number of personnel and assembly volumes are increasing each quarter.
The Russian factory employs currently some 50 persons.
Rapala's lure factory in Ireland was established in 1981 in Inverin,
close to Galway at the west coast of Ireland. The average number of
personnel in the Irish factory has been declining in last few years
and in 2007 it has been some 30 persons. The personnel will be some
20 persons at the end of 2007.
Rapala will book a restructuring provision in the fourth quarter for
the costs related to the closing of the factory. The amount of the
restructuring provision and the expected benefits will be announced
later when more detailed information is available."The labour cost for this type of production is too high in Ireland,"
states Juhani Pehkonen, Head of Rapala's Fishing Lure Business and
continues: "These changes will strengthen the Group's position as the
world's leading manufacturer of hard-bodied lures and increase
production efficiencies and capacity."
RAPALA VMC CORPORATION
Jorma Kasslin
Chief Executive Officer
For further information:
Jouni Grönroos, Chief Financial Officer, tel. +358 9 7562 540
Olli Aho, Company Councel, tel. +358 9 7562 540
Juhani Pehkonen, Head of Lure Business, tel. +358 9 7562 540
Distribution:
Helsinki Stock Exchange
Main Media
Rapala VMC Corporation is a leading fishing tackle company and the
global market leader in the fishing lures, treble hooks and fishing
related knives and tools. The Group also has a strong global position
in other fishing categories. The Group has its own distribution
companies in all the main markets and the largest distribution
network in the industry. The main manufacturing facilities are
located in Finland, France, Estonia and China. The Group brand
portfolio includes the leading brand in the industry,
Rapala, and other global brands like VMC, Storm, Blue Fox, Luhr
Jensen, Williamson and Marttiini. The Group, with net sales of EUR
227 million in 2006, employs more than 4 000 people in 29 countries.