LAROX CORPORATION COMPANY ANNOUNCEMENT ON 19 NOVEMBER 2009 at 15.00 pm
Larox concluded the employer-employee negotiations
Larox has concluded the statutory employer-employee negotiations that began on
October 5, 2009. The negotiations with Larox Corporation's personnel in Finland
were started in order to adjust the organization and cost structure to the
weakened demand. As a result of the negotiations Larox will implement both
lay-offs and personnel reductions.
A local collective agreement has been concluded in order to implement the
lay-offs and personnel reductions. Temporary lay-offs, with an average duration
of three weeks, will affect approximately 75 persons. Lay-offs will be scheduled
during the first half of 2010, and arranged in such a way that there will be no
harm to Larox's customer service.
Larox's personnel reduction need is approximately 15 full-time equivalents (FTE)
and most of the reductions will be implemented through voluntary retirement
arrangements. Part of the personnel reductions will be implemented as
dismissals.
Negotiations in Finland are part of a wider adjustment program that concerns the
entire Larox Group. "International recession has had a strong impact on Larox's
business. Outlook for the future is still uncertain and there are not
significant signs of recovery. As we have announced earlier, our adjustment
measures aim at 6.5 million Euros cost savings. We estimate that 4.5 million
Euros of this will be achieved in 2010, and the total savings target will be
reached in 2011", says Mr. Topi Karppanen, CEO and President of Larox
Corporation.
Larox Corporation
Mr. Topi Karppanen
President & CEO
for further information:
Topi Karppanen
Phone. +358 (0) 20 7687210
Fax +358 (0) 20 7687277
topi.karppanen@larox.com
www.larox.com
Distribution NASDAQ OMX Helsinki Ltd., Central media
Larox develops, designs and manufactures industrial filters and is a leading
technology company in its field. Larox is a full service solution provider in
filtration for separating solids from liquids. It supplies comprehensive
aftermarket services throughout the lifespan of the Larox solution. Companies
world-wide in mining and metallurgy, chemical processing and related industries
benefit from the Larox technologies. Larox operates in over 40 countries and
has about 600 employees. Larox has production facilities in Finland and in
China, and the Group is headquartered in Lappeenranta, Finland. Net sales in
2008 totaled 208.0 million euros, of which more than 93 % were generated by
exports and the company's foreign operations.