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Press Release

Cargotec Ends Employee Co-operation Negotiations in Finland

12/9/2008

 
 
Cargotec has ended the employee co-operation negotiations in Finland aiming for better efficiency. The employee co-operation negotiations resulted in a solution, according to which Cargotec reduces its workforce in Finland by 271 employees. In addition to ending permament employment contracts, the workforce is reduced by cutting down the number of external employment contracts and by not replacing retiring or resigning employees. Additionally, temporary employment contracts will not be continued after expiration.
 
In Salo, Hiab's own crane manufacturing will gradually be ceased by the end of 2009. The decision is a part of a plan to consolidate manufacturing in Europe into three factories. The remaining functions - product development, sales and marketing, finance and management, after sales and spare parts - will be reorganised according to the changed production structure. The efforts to find alternative solutions for the Salo factory with external parties continue.
 
As a result of lower demand and profitability Cargotec initiated in October restructuring measures mainly in Western Europe and North America, affecting some 700 people. The measures aim at adjusting capacity in Hiab to the prevailing market situation and improving Hiab's and Kalmar's profitability. The main need for measures is in Finland, Sweden and USA. Finland was estimated to account for close to 300 people. Cargotec started employee co-operation negotiations at four locations in Finland: Helsinki, Raisio, Salo and Tampere.The negotiations resulted in reducing the amount of workforce at all sites.
 
Cargotec has on going restructuring measures in several other countries. The global savings actions aim, in addition to adjusting capacity, at an annual result improvement of approximately EUR 25 million. The savings actions are expected to result in costs and asset write downs of approximately EUR 35 million.
 
Currently Cargotec employs approximately 1,700 employees in Finland.
 
More information for the press:
 
Pekka Vartiainen, President, Hiab
Tel. +358 (0)204 55 4401
 
Pekka Vauramo, President, Kalmar
Tel. +358 (0)204 55 4873
 
Minna Karhu, Vice President, Corporate Communications, Cargotec
Tel. +358 (0)204 55 4630
Mobile +358 (0)40 532 0007

More information for the investors:
 
Paula Liimatta, IR Manager
Tel. +358 (0)204 55 4634
 
 
 
Cargotec improves the efficiency of cargo flows by offering handling systems and the related services for the loading and unloading of goods. Cargotec's brands, Hiab, Kalmar and MacGREGOR, are global market leaders in their fields and their solutions are used on land and at sea - wherever cargo is on the move. Extensive services close to customers ensure the continuous usability of equipment. Cargotec is the technology leader in its field, its R&D focusing on innovative solutions that take environmental considerations into account. Cargotec's sales exceed EUR 3 billion and the company employs approximately 12,000 people. Cargotec's class B shares are quoted on the NASDAQ OMX Helsinki.
 
www.cargotec.com