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Suominen Flexibles’ employee negotiations in Finland concluded

Suominen Flexible Packaging Ltd. and Suominen Corporation have concluded the employee negotiations which were started on 13 September 2010. As a result of the negotiations, production at the Nastola plant will be terminated by the end of 2011 and transferred to other plants of Suominen Flexibles. Production at the Tampere plant will also be restructured and parts of the production will be transferred to Suominen’s plants in Poland and Ikaalinen, Finland. The measures aim to secure the long-term competitiveness of Flexibles’ operations.
As a result of the measures, 102 Finnish employees at Suominen Flexibles Ltd. and Suominen Corporation will be made redundant. The redundancies, transfer of machinery and other measures are estimated to generate one-off costs in the amount of approximately EUR 2 million. Approximately EUR 1 million of these will be entered in the accounts this year. The benefits of concentrating production and reducing costs will start to have effect in the latter half of 2011, which is why the measures’ impact on Suominen’s financial performance is expected to remain low in 2011. The transfer of production machinery is estimated to entail investments worth EUR 1.5 million in 2011. Suominen aims to divest the Nastola industrial premises which are going to be freed.

“This is a difficult but necessary decision in order to secure the future competitiveness of Suominen Flexibles,” says Petri Rolig, President and CEO of Suominen Corporation. “We are determined to move towards improved profitability and better success in the markets.”

Helsinki, 26 October 2010


Board of Directors

For additional information please contact: Mr. Petri Rolig, President and CEO, tel. +358 (0)10 214 300 Mr. Mikko Pellinen, Vice President and General Manager, tel. +358 (0)50 555 7534