PKC Group to start a development program

The development program is started due to the expected change in the business environment where consolidation of customers will result in change in purchasing behaviour that requires new production structure and model in Europe and South America. Program shall bring growth opportunities also through benefits of scale and redirecting resources. As part of the development program the group will maximising the production capacity in Europe in modern competitive factories in Serbia and Lithuania. The objective is that by the end of 2016, more than half of Europe's production capacity is in these factories. The production of factories in Sosnowiec (Poland) and Haapsalu (Estonia) will be ramped down by the end of 2014. Improving the production and logistics in South America. The purpose is to develop a new cost-efficient and flexible operating model by the end of 2015. The use of production capacity is improved by ramping down the production in Itajuba factory (Brazil) by the end of 2014.