HONKARAKENNE OYJ Stock Exchange Release 2 December 2014 at 9:55 a.m.
HONKARAKENNE OYJ REORGANIZES ITS OPERATIONS
Honkarakenne has concluded negotiations under the act on co-operation within undertakings launched in October. After concluding the co-operation negotiations the company has decided on reorganization and efficiency actions including reduction of 17 person-years. Actions will be implemented by laying off personnel for an indefinite period. In addition, the company has agreed on temporary lay-offs for a maximum of 90 days during March - December 2015 concerning clerical and managerial employees in Finland.
Reorganization includes changes in company’s executive group. The new executive group is Mikko Kilpeläinen, president and CEO, Mika Koivisto, sales area Finland, Pekka Elo, sales area Global Markets, Peter Morinov, sales area Russia and CIS-countries, Tanja Rytkönen, model collections and design, Erja Heiskanen, operations and Mikko Jaskari, finance. President and CEO Mikko Kilpeläinen is personally in charge of company’s product management development.
The personnel reductions and efficiency activities are estimated to result in 0,2 million euros non-recurring costs in financial year 2014 as provision cost for dismissals. The full impact of the programme will be apparent from the third quarter in 2015.
Honkarakenne will streamline its operations to achieve growth and better profitability. Focus will be on developing sales and marketing, improving the network of importers and distributors, and developing the design and architecture of company’s products. Efforts in Russia, CIS-countries and Asia will be continued, since the company sees significant long-term growth potential in these market areas, especially in China. To ensure growth in Finland the company will focus on the residential housing market and strengthen its position as the market leader in the leisure market. Special attention will be paid to residential housing models which are designed according to the Honka healthy house concept.
HONKARAKENNE OYJ
Mikko Kilpeläinen
President and CEO
FURTHER INFORMATION
Mikko Kilpeläinen, President and CEO, tel. +358 50 542 5884, mikko.kilpelainen@honka.com
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
Financial Supervisory Authority
www.honka.com