Uponor Corporation Stock exchange release 20 September 2013 10:00 EET
Uponor plans streamlining measures in Finland
Uponor's subsidiaries Uponor Infra Oy and Uponor Suomi Oy, have today invited their staff to co-determination negotiations, due to begin on Friday 27 September 2013 and to last a minimum of six weeks.
With respect to Uponor Infra, the goal is to push through with the merger plan begun in the summer. At that time, Uponor Corporation and the KWH Group combined their infrastructure solutions operations into a new joint venture, Uponor Infra Oy. The purpose of this merger is to achieve greater operational efficiency and improved profitability, while continuing to offer customers high-quality, competitive goods. Annual cost savings of around €10 million per year are being sought through the merger.
Through the co-determination negotiations, which will affect Finland, Uponor Infra is now seeking means of achieving savings in order to improve the profitability of its domestic operations. Possible measures may include restructuring of production and the elimination of overlaps arising from the merger. During the summer, Uponor Infra had already decided to close its sales office in Denmark and to combine two factories in Sweden.
“We are seeking efficiencies in order to secure the future, by developing our level of customer service and improving profitability,” comments Sebastian Bondestam, President, Uponor Infra Oy.
Uponor Suomi Oy, which provides building solutions, is seeking savings and efficiency measures in response to the downturn in the Finnish construction sector. Both companies have the joint aim of reorganising their sales and marketing organisations, for example.
The co-determination negotiations will affect the entire staff and all employee groups within the above-mentioned subsidiaries. This includes all employees of Uponor Infra Oy and Uponor Suomi Oy, totally employing around 740 persons. There is a possible need for 140 staff reductions, in addition to which temporary lay-offs may be included in the adjustment measures. The management of both companies believes that it may be possible to exclude some functions from the scope of the negotiations once they are under way.
Uponor Infra and Uponor Suomi have pipe production in Vaasa, Nastola, Ulvila and Forssa, as well as smaller production units in Jyväskylä, Espoo and Tuusula. Uponor Infra is under the ownership of Uponor Corporation (55.3 %) and KWH Group (44.7 %). Uponor Suomi is a wholly owned subsidiary of Uponor Corporation. The co-determination negotiations will not affect Uponor Corporation's other companies in Finland.
For further information, please contact:
Uponor Infra Oy: President Sebastian Bondestam, tel. +358 (0)20 129 2846
Uponor Suomi Oy: Managing Director Ville Ruohio, tel. +358 (0)20 129 2285
Uponor Corporation: Vice President, Communications Tarmo Anttila, tel. +358 (0)20 129 2852
Vice President, Communications
NASDAQ OMX - Helsinki
Uponor is a leading international provider of plumbing and indoor climate solutions for residential and commercial building markets across Europe and North America. In Northern Europe, Uponor is also a prominent supplier of infrastructure pipe systems. The Group employs approx. 3,000 persons, in 30 countries. In 2012, Uponor's net sales exceeded €810 million. Uponor Corporation is listed on NASDAQ OMX Helsinki in Finland. http://www.uponor.com.