Uponor Corporation Stock exchange release 24 Sept 2014 15:00 EET
Uponor’s Finnish co-determination negotiations concluded - workforce to reduce by nearly 100, two prefab units will close
The co-determination negotiations within Uponor’s Finnish subsidiaries, Uponor Infra Oy and Uponor Suomi Oy, were concluded yesterday, 23 September. As a result, Uponor Infra decided to close its chamber prefabrication units in the towns of Jyväskylä and Tuusula and relocate their operations to existing factories in Vaasa and Nastola. Uponor Infra Oy and Uponor Suomi Oy will terminate the employment contracts of a combined total of 70 employees. In addition, there will be a reduction of 26 employees as a result of expiring temporary contracts and voluntary retirement, among other measures. The original reduction target, stated at the outset of the negotiations, was 100 persons. Just over half of the reductions, 36 persons, will occur in the town of Vaasa, while the remaining half will be distributed between Tuusula, Nastola and Jyväskylä.
Uponor Infra Oy and Uponor Suomi Oy began the co-determination negotiations on 4 August 2014. They covered most of the Finland-based personnel of Uponor Infra, approximately 520 persons, as well as the shared-services personnel in Uponor Suomi Oy, totalling 20 employees. The purpose of the negotiations was to seek savings and streamlining measures in response to the weak domestic market environment, as well as enhancing shared-services operations.
Relocation of the manufacturing operations of the Tuusula and Jyväskylä units will commence with immediate effect. As a further measure, changes and enhancements will be implemented in the Finnish sales and marketing operations, offering management, supply chain and shared services.
It is estimated that the restructuring measures at hand will bring non-recurring items of ca €1.5 million that will mainly burden the operating profit for 2014 in the third and fourth quarters. These non-recurring items will mainly involve costs associated with personnel reductions, changes in manufacturing, and write-offs. The company aims to complete the restructuring measures by the end of the first quarter of 2015. As announced earlier, annual cost savings of close to €5 million are expected in relation to Uponor Infra.
The production relocations to Vaasa and Nastola are expected to open up some 15 new job opportunities which, in the first instance, will be offered to those laid off. The company will provide support to employees relocating for this purpose and will provide those losing their jobs with information on the statutory support structures offered by Employment and Economic Development Offices. Furthermore, the employer will provide those being laid off with training, spanning a few months, on seeking new employment.
After the restructuring, Uponor Infra Oy’s Finnish pipe production will continue in Vaasa and Nastola. 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.
For further information, please contact:
Uponor Infra: Sebastian Bondestam, President, tel. +358 (0)20 129 2846
Uponor Corporation: Riitta Palomäki, CFO, tel. +358 (0)20 129 2822
Uponor Corporation
Tarmo Anttila
Vice President, Communications
tel. +358 (0)20 129 2852
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Uponor is a leading supplier of indoor climate and plumbing systems for the residential and commercial building markets in Europe and North America. In Northern Europe, Uponor is also a prominent regional supplier of municipal infrastructure pipe systems. Uponor employs approximately 4,100 people in 30 countries. Uponor Group reported net sales of over EUR 900 million in 2013. Uponor's shares are quoted on the NASDAQ OMX Helsinki Ltd. http://www.uponor.com.