Type
Internal restructuring
Country
Finland
Region
Manner-Suomi; Etelä-Suomi; Varsinais-Suomi
Location of affected unit(s)
Uusikaupunki
Sector
Manufacturing
Manufacture For Transport Equipment
Manufacture Of Motor Vehicles, Trailers And Semi-Trailers
29.1 - Manufacture of motor vehicles

222 jobs
Number of planned job losses
Job loss
Announcement Date
8 December 2006
Employment effect (start)
Foreseen end date
1 April 2007

Description

Valmet Automotive car factory in Uusikaupunki is planning to cut its workforce by 25% in spring 2007. Valmet Automotive's production volume in Uusikaupunki car factory is estimated to decrease gradually during the spring to about 100 cars per day by April 2007. During the first eleven months in 2006 the production volume has been approximately 150 cars per day. The reason for the decrease is the overall uncertain situation in the automobile market and its effects on the demand for the factory's products. The decrease in production volumes brings the job cuts. Valmet Automotive announced in November a reduction in the daily production volume from 153 cars to 132 cars. At the same time, personnel negotiations regarding 80 employees were initiated. At the personnel negotiations held on 8 December 2006, the company informed the employee representatives of the impact the further decrease in production volumes will have on the personnel. Currently, there is a need to reduce the workforce by 260 instead of the previously estimated 80. The car factory currently employs about 1,060 people. Valmet Automotive's net sales during the first nine months in 2006 were 81 million euro and operating profit 10.7 million euro. Valmet Automotive is part of Metso Corporation.

On 21 December 2006 it was announced that the company has concluded personnel negotiations which were initiated in early November 2006. The company has decided to dismiss 222 employees instead of 260 as it was suggested in the negotiation proposal. The planned 222 job cuts include 216 blue-collar and 6 white-collar positions. After the reduction, the number of personnel will be about 800.

The purpose of these measures was to ensure competitiveness and adequate profitability in the current market situation. According to Mr Kuisma MD, the world market for special cars has been unfavourable in the recent period. However, in the short term market situation seems to be stable.

The company currently produces Porsche Boxster and Cayman for Porsche AG. Since 1997, some 150,000 Porsche sports cars have been manufactured in Finland.


Sources

  • 9 December 2006: Helsingin Sanomat
  • 21 December 2006: Kauppalehti

Citation

Eurofound (2006), Valmet, Internal restructuring in Finland, factsheet number 64595, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/64595.