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| Mass job cuts at Metso cap grim day for job news |
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http://www.sbdailynews.com
2009-02-01 |
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Machinery manufacturer Metso set a new record for job cuts in Finnish industry for this year. The company plans to cut more than 1,000 jobs - one in every three involved in the manufacture of paper machines. Furthermore the move involves permanent job cuts, not temporary layoffs.
Co-determination talks with personnel on the cutbacks are to start, concerning the need by Metso Paper to cut between 900 and 1,200 jobs. In addition, Metso Automation plans either temporary or permanent layoffs of affecting 90-130 employees, and Metso Minerals needs to cut 200 jobs and impose some temporary layoffs as well.
”It is very unfortunate that we have to start measures of this magnitude in Finland. However, we want to ensure the competitiveness of the solutions we offer to the pulp and paper industry also in the future”, said Metso CEO Jorma Eloranta in a press release issued on Monday.
Metso expects investments by paper manufacturers to decline by a third compared with the 2004-2008 period, although the pace of investment in recent hears has been intense.
Nevertheless, Eloranta notes that demand for new heavy machinery will remain low, and that if any demand exists, it will mostly be in China, where Metso could even have to hire more employees.
Also on Monday, pulp and paper manufacturer Stora Enso began discussions with personnel on temporary redundancies for more than 5,000 employees.
In the latter half of last year Stora Enso already significantly limited its output of paper and cardboard products, as well as production of pulp and sawn timber. The output restrictions continue in the spring because of weak demand.
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