Lemminkäinen has concluded personnel negotiations in Finland
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 9 JUNE 2014 AT 11:15 A:M
LEMMINKÄINEN HAS CONCLUDED PERSONNEL NEGOTIATIONS IN FINLAND
The personnel negotiations at Lemminkäinen that began on 5 May 2014 have been concluded in Finland. As a result, Lemminkäinen will cut a maximum of 265 full-time equivalents from its operations in Finland. When the negotiations were initiated, Lemminkäinen estimated that the personnel impact of the planned measures is up to 500 full-time equivalents about half of which in Finland. The negotiations are part of Lemminkäinen’s Deliver 2014 programme through which the company aims to save approximately EUR 30 million in fixed costs. The savings target for 2014 is EUR 10 million. According to the company’s estimate, the set targets will be achieved with the personnel reductions as well as with other cost savings.
In Finland, the personnel reductions will be realised through the termination of employment contracts, temporary lay-offs, discontinuation of fixed-term contracts, retirement, resignations and other voluntary arrangements. It is estimated that the measures will take place gradually by the end of October 2014. The exact reduction rates per area will be fully clear only after this. Lemminkäinen has decided to close its building construction offices in Kokkola and Kouvola.
In addition, Lemminkäinen will achieve cost savings by i.a. cutting or re-evaluating some of the Group’s IT and other development projects, selling non-core assets and operations, lightening its support functions and by cutting back other fixed costs that are not critical to business operations.
“The Deliver 2014 programme will lighten our cost structure and improve our operational efficiency in a challenging operating environment. As difficult as some of these decisions have been, they will significantly improve Lemminkäinen’s competitiveness The company’s renewal will continue,” says Lemminkäinen’s interim President and CEO Berndt Brunow.
On 28 April 2014, Lemminkäinen announced that as a part of its Deliver 2014 programme it will begin personnel negotiations or similar measures that cover the entire Group and all personnel groups apart from the Technical building services business segment. In Denmark, the negotiations have already been concluded. In Russia, Norway, Sweden, Estonia, Latvia and Lithuania, the processes are still ongoing. The progress of the Deliver 2014 programme and its personnel impacts will be reported in connection with the interim reports.
Lemminkäinen employed 6,761 people at the end of March 2014. Approximately 4,500 people worked in Finland, of which 1,500 were employed by Technical building services.
Berndt Brunow, Chairman of the Board of Directors, interim President & CEO
Ilkka Salonen, interim CFO
Tel. +358 2071 54524 and +358 2071 54518
NASDAQ OMX Helsinki
Together with our customers we create conditions that make living, working and travelling functional, safe and healthy. We operate in northern Europe and employ about 7,800 experts. In 2013, our net sales were about EUR 2.2 billion. Lemminkäinen Corporation’s share is quoted on NASDAQ OMX Nordic Exchange Helsinki. www.lemminkainen.com