PKC Group to lay off in Estonia, Russia & Finland

PKC Group's forecast for the last quarter is lowered so that the operative profitability will decrease significantly in comparison to the same period a year earlier. Otherwise we are maintaining our forecast, according to which full year net sales are expected to grow on the previous year and operative profitability to remain at a good level and that due to declining delivery volumes, falling prices and adjustment measures the last quarter's net sales will fall slightly below the previous year's comparative period. Commercial vehicle demand has decreased significantly during the current year and it is expected that production volumes will decrease gradually toward the end of the year. In order to ensure PKC Group's competitiveness it is necessary to downscale operations to a level that matches demand and to reorganise operations. Measures to decrease number of employees have already started in Estonia and Kostomuksha, Russia. Adjustment measures will start in Kempele by initiating co-determination negotiations due to production and financial reasons and the restructuring of operations. The negotiations concern all the personnel groups and may lead to lay-offs of 100 persons. Changes are also made in the Wiring Harnesses business's management. The service contract of Jaan Murdla, Vice President, Wiring Harnesses has been terminated and Pekka Korkala, Vice President, Wiring Harnesses will be solely responsible for the Wiring Harnesses business. Group's wiring harness production employs over 3,000 people in Europe. In addition to Kempele, production units are located in Russia in Kostomuksha and Pskov and in Estonia in Keila and Haapsalu.