Valmet Automotive, a company focused on contract manufacturing of cars and other industrial products, is initiating change negotiations on financial and production-related grounds. The negotiations apply to all Valmet Automotive personnel in Finland, 1300 employees in total. The estimated need for adjustments is at most 1075 person-years. The employer is considering adjustment measures such as temporary layoffs, terminations of jobs, and changes to job descriptions.
The downturn in the European automotive industry has impacted the company’s financial performance and reduced the amount of work at the Uusikaupunki plant. On the other hand, Valmet Automotive’s recent strategic decision to offer the company’s contract manufacturing expertise to other industries, including the defense sector, has not yet been reflected in the company’s order book.
The company is starting change negotiations to adjust the number of personnel to better meet the current demand. The aim is also to improve Valmet Automotive’s profitability and competitiveness and to secure the company’s ability to implement its strategy in the future.
“Starting change negotiations was a difficult but necessary decision. At the beginning of September, we announced our new strategic direction, which outlines that we will utilize our expertise also beyond the automotive industry in the future, including the defense sector. This will create new pillars for our business going forward and stabilize our operations in the long term. However, at the moment, the amount of work in the manufacturing business is unfortunately decreasing”, says Pasi Rannus, CEO of Valmet Automotive.
In the negotiations on the implementation of the adjustments, solutions will be sought that best take into account the interests of both the personnel and the company.
SOURCE: Valmet Automotive
