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Metso Pulp, Paper and Power concludes employee negotiations in Fabrics and Power businesses


June 17, 2013 - HELSINKI, FINLAND

Metso's Fabrics and Power businesses haveconcluded the statutory negotiations initiated on May 2, 2013. The processis part of the company's Pulp, Paper and Power segment's two-year programto improve cost competitiveness.

As a result of the negotiations, the Fabrics business will reduce 60 jobsat its Tampere, Finland plant by relocating their narrow filter fabricproduction to Ovar in Portugal by the end of June 2014. The reduction needof personnel at the Tampere plant is 32, taking into account internaltransfers of personnel, retirement arrangements and terminations oftemporary contracts.

The Power business will cut a total of 88 jobs in Finland and isnegotiating a reduction of 70 jobs in Sweden. It will also reduce10 jobs inother countries. The reductions will be carried out starting immediatelyand concluded by the end of 2013.

The measures will affect all personnel groups. Initially the reduction needwas estimated to be 80 jobs in the Fabrics business and 175 jobs in thePower business globally.

As a result of the reductions, Metso Pulp, Paper and Powers' annual costsare estimated to decrease by approximately EUR 17 million. The cost cutsare estimated to be realized in full starting in 2014. One-offrestructuring costs are estimated to be approx. EUR 4 million, the majorityof which are estimated to be booked during the second half of 2013.

In the filter fabric market, Metso's competitors have increased theircapacity and penetrated into the traditional filter fabric market, alsoincreasing price competition.

With the relocation of the narrow filter fabric production from Tampere toOvar, the Fabrics business responds to the tightening competition andimproves its cost competitiveness. The relocation also supports thestreamlining and specialization of the Fabrics business' production sites.The production of wide filter fabrics will remain mainly in Tampere.

In the Power business the introduction of shale gas has lowered energyprices in North America driving usage away from biomass and coal. InEurope, the renewable regulatory support situation combined with theregion's economical uncertainties has caused a reduction in investments.Decision making in the pulp market has also slowed down, leading to lowerdemand for pulp mill related energy solutions.

Metso's pulp, paper and power professionals specialize in processes,machinery, equipment, services, paper machine clothing and filter fabrics.Our offering and experience cover the entire process life cycle includingnew production lines, rebuilds and services.

As of January 2014, Metso's Pulp, Paper and Power business will serve itscustomers with an even more focused and competitive approach as anindependent, listed company, Valmet Corporation*.

*Pending Metso EGM approval.

www.metso.com/pulpandpaper, www.metso.com/power,www.twitter.com/Metsoenergy

Metso is a global supplier of technology and services to customers in theprocess industries, including mining, construction, pulp and paper, power,and oil and gas. Our 30,000 professionals based in over 50 countriescontribute to sustainability and deliver profitability to customersworldwide. Metso's shares are listed on the NASDAQ OMX Helsinki Ltd.

www.metso.com, www.twitter.com/metsogroup

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Metso Corporation via Thomson Reuters ONE

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For further information, please contact:

Reima Kerttula
Vice President, Fabrics business unit
Metso
tel. +358 400 648 458

Kai Maenpaa
Managing Director Metso Power Oy
Metso
tel. +358 20 14121

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