LAROX CORPORATION COMPANY ANNOUNCEMENT ON 22 APRIL 2009 at 12.00 am
LAROX CONCLUDED THE EMPLOYER-EMPLOYEE NEGOTIATIONS
On 22 April 2009 Larox concluded the statutory employer-employee negotiations
that began for financial and production reasons on 3 March 2009. A local
collective lay-off agreement has been contracted. Thanks to this agreement Larox
avoids dismissals in Finland.
In general the lay-offs will be applied to all functions and to the whole
personnel in Finland (approximately 270 persons), and they will be temporary or
until further notice. Temporary lay-offs will last from two weeks to
approximately three months, average lay-off duration being approximately four
weeks. Details concerning the lay-off durations and dates will be agreed by the
end of May. Lay-offs will be arranged in such a way that they will not harm
Larox's customer service.
"Global financial crisis has had an impact on Larox's customers and on our
business. Our order backlog since the beginning of 2009 is on a low level. We
have to secure our ability to operate by improving our efficiency and by
cost-savings. Our target is to achieve at least three million euros cost-savings
in staff expenses in comparison to last year's realized expenses. The measures
agreed today will enable us to reach this target", says Mr. Topi Karppanen,
Larox Corporation President & CEO.
In addition to the above measures Larox is implementing structural adjustments.
The aim is to improve customer service, reduce overlappings and to improve
profitability in a longer term. Functions have been centralized and new
equipment sales has been organized into one division.
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
over 590 employees. Larox Group is headquartered in Lappeenranta, Finland where
the Group also has production facilities. Net sales in 2008 totaled 208 million
euros, of which more than 93 % were generated by exports and the company's
foreign operations.