Helsinki, Finland, 10 March 2009 -- Metso has concluded employee negotiations in the Process Automation Systems unit of the Automation business line that affect all of the unit’s employees in Finland. As a result of the negotiations completed yesterday, persennel will be reduced by 77 white-collar employees. Some of the personnel subject to the reduction measures may be offered an alternative position within the unit. Additionally, unit-specific temporary layoffs of varying durations will be implemented, depending on workloads. The temporary layoffs are estimated to correspond to 53 employee-years of work and they affect almost all personnel of the Process Automation Systems unit.

As a result of the negotiations, the unit also will consolidate production operations and reorganize the work sites. Some of the operational restructuring measures are underway. Already the unit concluded a sale of the roll tracking application in papermaking finishing line to Protacon Group. The divested business has employed seven people. The reductions will be implemented by the end of March.

To secure continuity of operations, the temporary layoffs will be implemented in phases during 2009. Some of the layoffs may be implemented as shortened work hours. When the personnel negotiations commenced on 19 January, the employee reduction need was estimated at a total of 90-130 individuals. One of the alternatives reviewed was whether some of the reductions could be substituted with the temporary layoff of a larger number of unit employees.

These measures are the result of the weakened paper and pulp industry markets. More than half of the Process Automation Systems unit’s orders have originated from the pulp and paper industry. The unit’s operations and cost structure must be adjusted to the changed market situation.

The Automation business line employs about 1700 people in Finland. The Process Automation Systems unit employs about 830 people in Finland and its largest sites are in Tampere and Kajaani.

Metso (www.metso.com) is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. The company has more than 29,000 employees in more than 50 countries.