Lemminkäinen to inititate negotiations to reduce personnel
LEMMINKÄINEN CORPORATION STOCK EXCHANGE BULLETIN 18 OCTOBER 2011 AT 10:00 AM
LEMMINKÄINEN TO INITITATE NEGOTIATIONS TO REDUCE PERSONNEL
Lemminkäinen is enhancing its operational efficiency to improve its profitability and competitiveness. Despite increased order book, the company's profitability has not improved according to targets set. Furthermore, the general economic conditions have weakened.
On Monday 10 October 2011, Lemminkäinen announced its specified strategic focus and the launch of a corporate-wide efficiency programme. The programme strives to generate permanent cost savings of EUR 50 million annually from 2013 onwards. Savings of approximately EUR 30 million are sought through more efficient procurement. Savings of some EUR 20 million are targeted, for example, through more efficient operating methods, processes, operating network and organizational and management structures. Lemminkäinen estimates that approximately half of the savings will be achieved in 2012.
As part of the efficiency programme, Lemminkäinen is initiating negotiations with its personnel groups regarding more efficient operating methods as well as potential personnel and cost cuts. The negotiations will affect the entire Lemminkäinen Group in Finland and in other operating countries.
The personnel negotiations regarding the Finnish operations will start on 24 October 2011. In other operating countries the negotiations will be initiated in accordance with local laws and regulations and if possible, according to the same schedule as in Finland. Lemminkäinen estimates the total personnel reduction need in the entire group to be 300 man-years at most. The negotiations aim to identify alternative adjustment measures to personnel reductions.
The company employs approximately 8,000 personnel, 70 per cent of whom work in Finland.
Timo Kohtamäki, President and CEO
Tel. +358 2071 53263
NASDAQ OMX Helsinki Oy
Lemminkäinen Group operates in all areas of the construction sector. The Group's business sectors are Building Construction, Infrastructure Construction and Technical Building Services. A fourth business sector, International Operations, will be introduced at the beginning of 2012. Net sales in 2010 were around EUR 2.0 billion, of which international operations accounted for roughly a quarter. The Group employs 8,000 people on average. Lemminkäinen Corporation's shares are quoted on NASDAQ OMX Helsinki Ltd. www.lemminkainen.com