Suominen Flexibles to intensify its business recovery program
Helsinki, Finland, 2013-10-25 12:30 CEST (GLOBE NEWSWIRE) -- Suominen Corporation Stock Exchange Release 25 October 2013 at 13:30 (EEST)
SUOMINEN FLEXIBLES TO INTENSIFY ITS BUSINESS RECOVERY PROGRAM
Suominen Flexibles has decided to intensify the ongoing business recovery program to improve its profitability. Due to the planned actions, Suominen Flexibles initiates codetermination negotiations at its Finnish locations. Plan for profitability improvement concerns also operations in Poland.
Suominen Joustopakkaukset Oy, located in Tampere, plans to improve its profitability through increasing operational efficiency, renewing operating procedures and optimizing its cost structure. Further, the company plans to adjust its production capacity with the current business environment and revised strategic targets. Suominen Joustopakkaukset Oy has tentatively estimated that the planned actions may lead to a permanent reduction of 30 full-time work years at maximum. The negotiations involve the entire personnel of Suominen Joustopakkaukset Oy, approximately 180 people.
Suominen Ikamer Oy, located in Ikaalinen, anticipates that in short-term, the demand for products supplied by the plant may remain lower than expected. To temporarily adapt the operations of the plant to the current business environment, Suominen Ikamer Oy initiates codetermination negotiations concerning potential temporary lay-offs. The negotiations involve the employees working in production and in production-related support functions, in total approximately 60 people. The potential temporary lay-offs would last 90 days at maximum and would be implemented in shorter periods between November 2013 and May 2014.
The business recovery program was initiated in Suominen Flexibles in December 2012, and it has advanced as planned in many fields. The business unit has increased its sales, improved productivity, renewed its strategy and reorganized its operations in a more customer-oriented way. However, the financial result of Suominen Flexibles has remained negative. The aim of the new actions planned is to ensure the long-term competitiveness and profitability of the business.
Suominen Flexibles is one of the leading flexible packaging suppliers in Northern and Central Europe in all of its business segments: bread packaging, tissue packaging, retail carrier bags as well as in special products. In January-September 2013, the net sales of the Flexibles segment increased from the comparison period by 12% and amounted to EUR 44.1 million, which represented 13% of the Suominen Group net sales. The operating loss of the segment was EUR 1.5 million.
For additional information, please contact:
Nina Kopola, President and CEO, Suominen Corporation, tel. +358 10 214 300
Suominen in brief
Suominen supplies its industrial and retail customers with nonwovens and flexible packaging for use in consumer products worldwide. Suominen is the global market leader in nonwovens for wipes. The company employs more than 1,000 people in Europe and in the United States. Suominen’s net sales in 2012 amounted to MEUR 410.4 and operating profit excluding non-recurring items was MEUR 12.9 (continuing operations). The Suominen share (SUY1V) is listed in NASDAQ OMX Helsinki Stock Exchange. Read more at www.suominen.fi.
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