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21
June
2012

Cencorp to close down in Hungary, Sweden and UK

The closure of Cencorp's Guangzhou plant decreases full year sales estimate. The statutory negotiations in Cencorp's Finnish offices have been concluded.
Cencorp announced on 29 May 2012 that the company closes down its decoration plant in Guangzhou, China. The decoration business has made heavy losses: in 2011 the operating loss was EUR2.8 million and in the first quarter of 2012 EUR 0.9 million.

Closing down Guangzhou plant will decrease the number of Cencorp's personnel by some 110 people. Operations at Cencorp's Beijing plant continue normally.

The company estimates the full-year net sales of its continuing operations to be smaller than last year's corresponding sales that were EUR21.6 million and the full-year EBITDA is estimated to be positive provided that no essential change takes place in the operating environment or in the current economic outlook. Last year's corresponding EBITDA was EUR-1.7 million.

Cencorp's statutory negotiations that started in May 2012 have been finished. As a result of the negotiations the number of Cencorp's personnel in Finland will decrease by 14 persons. Reduction will be carried out by outsourcing and with notices of terminations. As stated in Cencorp's new strategy published in April the company will outsource its in-house equipment production including supportive functions. At the same time product design will be strengthened with strategic partnerships.

Restructuring of Cencorp Group's foreign units has been started. In North America the number of employees is decreased by three persons. Cencorp's purpose is to close down the subsidiaries in Hungary, Sweden and UK by the end of 2012. Closing down subsidiaries has no influence in the number of personnel.

These actions will reduce the number of Cencorp corporation's personnel from 310 to 183 persons.
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