Exel Composites Plc to start co-determination negotiations in the company’s manufacturing units in Finland
EXEL COMPOSITES PLC – INVESTOR NEWS – 22 JANUARY 2019 at 14:00 EET
Exel Composites starts co-determination negotiations in the company’s Finnish units on financial and productive grounds with the purpose of improving profitability and adjusting the company’s resources to the need. The negotiations concern about 200 employees working in Mäntyharju and Joensuu.
In addition to cost savings measures to be implemented, the initial personnel reduction need is estimated to be maximum 9 persons. The research and development, sales or customer service functions are not within the negotiations. The negotiations are estimated to be concluded during February 2019.
As communicated in a stock exchange release on 31 October 2018, Exel Composites initiated a Group-wide cost reduction program to improve Group profitability. The program consists of optimizing Exel Composites’ manufacturing footprint in Europe, improving the profitability and cost efficiency of the acquired DSC business as well as further synergy savings between the company’s two manufacturing units in China, among other things. The annual savings target of the program is EUR 3 million, expected to be fully effective in 2020.
Vantaa, 22 January 2019
Exel Composites Plc
Riku Kytömäki
President and CEO
Mikko Kettunen
CFO, Business Unit Manager, Finland