Neste Oil to make major investments in Finland, integrate the operations of its Finnish refineries, and reduce personnel

Neste Oil Corporation
Stock Exchange Release
7 October 2014 at 9:00 a.m. (EET)

Neste Oil to make major investments in Finland, integrate the operations of its
Finnish refineries, and reduce personnel

Neste Oil is planning to initiate a major development program to rationalize its
operations. Investments totaling approx. EUR 500 million are to be made in
growth and optimizing production at the company's Porvoo and Naantali refineries
in Finland. The plan is to closely integrate refinery operations at Porvoo and
Naantali to achieve better operational and cost efficiency. Some operations will
be shut down or outsourced. The impact of these changes, together with changes
that have already been implemented, are expected to reduce Neste Oil's labor
requirement by approx. 250 employees, primarily in Finland. Neste Oil has issued
an invitation to personnel to take part in statutory employer-employee
negotiations covering these changes and how they will affect employees.

"The investments that we're planning, when completed, will help us reach our
long-term profitability target," says Neste Oil's President & CEO, Matti
Lievonen. "We intend building an SDA (solvent de-asphalting) unit at Porvoo
costing EUR 200 million and implementing process enhancement investments valued
at EUR 60 million at Naantali, as internal projects. The EUR 250 million power
plant investment planned for Porvoo will be carried out through an off-balance
sheet joint venture."

"Given the substantial overcapacity that exists in the oil refining sector in
Europe, we need to look at a broad range of solutions for improving our
competitiveness and securing the foundation of our future operations and
growth," says Lievonen.

Planned program of production-related investments

The planned program of new investments covers a number of projects, of which the
largest will be the construction of an SDA feedstock pre-treatment unit at
Porvoo. Costing EUR 200 million, this will improve Neste Oil's production
structure and ability to optimize its crude oil slate, and is due to be
completed in 2017.

At Naantali, Neste Oil plans simplifying the structure of the refinery and
investing approx. EUR 60 million in various utility-related enhancements. Basic
engineering on these projects is due to be completed in early 2015, after which
a final decision on the individual investments will be taken, with completion
following in early 2017.

Reorganizing energy operations

Neste Oil is investigating the future of the electricity distribution system at
the Porvoo refinery as part of wider efforts designed to enhance the company's
competitiveness. One of the options being looked at is to sell the distribution
network to an outside investor. The plan is to complete this study later this
year. Selling the network would free up resources for investments in the
company's core businesses.

The project to modernize energy generation at the Porvoo refinery announced in
May 2013 has been modified and the plan now is to implement the power plant
investment, valued at more than EUR 250 million, through a joint venture with
Veolia and Borealis. The intention is to take a final decision on the project in
spring 2015; completion of the investment is scheduled for 2017.

One refinery system, five production lines

The plan is to closely integrate operations at Neste Oil's two Finnish
refineries and manage them as one system, with four production lines at Porvoo
and a fifth at Naantali. This will result in some of the existing units at
Naantali being shut down.

Naantali will continue to produce diesel and specialty products such as
solvents; and play an important role in producing feedstocks such as vacuum
gasoil for use at Porvoo. Gasoline components produced at Naantali will be
refined into end-products at Porvoo, and terminal capacity at Naantali used for
distributing gasoline from Porvoo.

Impact of the planned changes on personnel

The structural changes being planned, and those already implemented, together
with the refinery changes and new investments, will reduce Neste Oil's labor
requirement. Neste Oil estimates that it will need to reduce a total of 250
employees, primarily in Finland. This number does not include possible
outsourcings. Reductions will mainly affect the Group's common functions and the
Oil Products business area.

The plan is to adjust the number of personnel to match the changes that have
already been made, those now being planned, and future business needs - and
achieve a more cost-effective and flexible structure and operations. The changes
will also see some jobs transferred to different locations, while the
investments will generate some new jobs.

A conference call in English for investors and analysts

A conference call in English for investors and analysts will be held today, 7
October, at 5 p.m. Finland / 3 p.m. London / 10 a.m. New York. The call-in
numbers are as follows: Finland: + 358 (0) 9 6937 9543, Europe:
+44(0)20 3427 1914, US: +1 646 254 3363  using access code 5597657. The
conference call can be followed at company's web site. An instant replay of the
call will be available until 13 October 2014 at +358 (0)9 2310 1650 for Finland,
at +44(0)20 3427 0598 for Europe and + 1 646 254 3363 for the US, using access
code 5597657#.

Neste Oil Corporation

Osmo Kammonen
Senior Vice President, Communications and Brand Marketing

Further information:


Matti Lehmus, Executive Vice President, Oil Products, tel. +358 (0)10 458 4072
Hannele Jakosuo-Jansson, Senior Vice President, Human Resources and Safety,
+358 (0)10 458 4688

Photos for media use:
http://brandbank.nesteoil.com/?cart=1336-aeecgemimk&l=EN

Neste Oil in brief


Neste Oil Corporation is a refining and marketing company concentrating on low-
emission, high-quality traffic fuels. The company produces a comprehensive range
of major petroleum products and is the world's leading supplier of renewable
diesel. Neste Oil had net sales of EUR 17.5 billion in 2013 and employs around
5,000 people, and is listed on NASDAQ OMX Helsinki.

Neste Oil is included in the Dow Jones Sustainability World Index, and has
featured in The Global 100 list of the world's most sustainable corporations for
many years. Forest Footprint Disclosure (FFD) has ranked Neste Oil as one of the
best performers in the oil & gas sector. Further information: www.nesteoil.com

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