Cencorp with temporary layoffs in Finland

Cencorp's personnel in Finland will be laid off by financial and production-related reasons in phases on average for seven days per calendar month, starting as of 3 October 2011. The maximum number of lay-off days will be 90 days per person. The lay-offs will be carried out in phases in order to maintain the company operating ability and the capacity to deliver products according to the demand. "Negotiations were concluded during less than one week, and Cencorp's personnel showed real commitment to obtain the needed savings on fast timetable. I would like to thank the employees for the well-run negotiations", says Mats Eriksson, President and CEO. Measures that were launched already during the first quarter of the year in order to rationalize the operations and improve profitability have stepped up in the Special Components segment, among other things, by concentrating manufacturing in China on two plants instead of the previous three. The rationalization measures will be continued by focusing on those product groups in which growth and profitability can be achieved without remarkable investments.