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PCB | May 04, 2007

Aspocomp axe 320 in Finland<br>- Possible closure of Salo Plant

Aspocomp has today issued a notice on statutory labor co-determination negotiations in Finland. The Group's Finnish operations have made notable losses since 2005.
Despite various measures taken to rectify the situation, the production of high density interconnection (HDI) PCBs for handsets in the Salo plant has remained unprofitable. The aim of the negotiations is to find the best ways to improve the company's profitability, which may include a possible closing of the Salo plant. The target is to reach annual savings in excess of EUR 10 million.

The negotiations concern about 350 employees at Aspocomp Group Oyj and Aspocomp Oy, excluding the personnel in the Oulu production unit. The total number of personnel in Finland is 543. Possible personnel cuts would be implemented during 2007 and affect a maximum of about 320 people.
The negotiations may result in balance sheet write-offs. In the event the negotiations lead to the closing of the Salo plant, it is estimated that the related non-recurring costs, including the write-offs, may amount to about EUR 20 million. The negotiations and possible closing of the plant is not expected to affect customer deliveries."In order to succeed in the present fast-paced, extremely competitive printed circuit board market, it is vital to look into our cost structure and perfect the operational efficiency. Aspocomp's volume production has been mainly transferred to Asia, where we can serve the global customers cost-effectively in the fastest growing market", says CEO Maija-Liisa Friman.

Further development of the Group's operations in Asia is proceeding as planned. Takeover of the minority holding in the Chinese subsidiary is also progressing well and the plant in India and further HDI PCB production in China are initially planned to start in 2008.

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