Moscow. Jan 13, 2009. /Lesprom.com/. Pöyry takes significant adaptation measures in its Forest Industry and Construction Services business groups by starting statutory employee negotiations in business units based in Finland. The negotiations concern some 600 employees, Pöyry said in a statement received by Lesprom Network. The economic downturn has impaired forest industry companies' profitability and restrained globally the availability of investment financing. For this reason, projects have been postponed, preparations for new projects have slowed down and the amount of consulting assignments has decreased. Demand for Forest Industry business group's services has declined and a recovery in the demand is difficult to predict, according to Pöyry.
Pöyry launched during the autumn 2008 an action program to maintain profitability at as high a level as possible. The program focuses on sales, resources, cost structure and investments. In addition, temporary employment contracts and subcontracting will be cut back as projects in progress are completed.
As part of the adaptation measures, Pöyry has decided to initiate statutory employee negotiations in the Finland-based business units of the Forest Industry and Construction Services business groups. The statutory negotiations are concerned with temporary and permanent lay-offs, and other actions to adapt operations to the current market situation.
The specific need for and duration of temporary lay-offs, possible permanent lay-offs and other actions will be determined in detail as negotiations proceed. The adaptation will equal a capacity of about 350 persons in the Forest Industry and a capacity of about 250 persons in the Construction Services. The negotiations will begin during January and are expected to be concluded in March.
In the Forest Industry business group's Brazilian unit a capacity of about 200 persons will be down-sized, in addition to other local cutback measures.
Demand for Pöyry's Energy, Transportation, and Water and Environment business groups' services has remained stable.
The clearly reduced demand and lower capacity utilization is expected to have a significant weakening effect on the Forest Industry business group's on the Construction Services business group's operating profit for 2009. Preliminarily this is expected to significantly weaken Pöyry's profit for 2009.
The Group's earnings guidance for 2008 will remain unchanged.
Additional information: Poyry Forest Industry Consulting OY
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