KCI Konecranes to increase efficiency in motor production

KCI Konecranes subsidiary KCI Motors Oy has initiated labour negotiations with its personnel concerning measures to increase efficiency in motor production.

The Group has previously announced efficiency increasing and rationalization measures aimed at securing KCI Konecranes’ competitiveness in the future. These actions will now also apply to the Group’s own production of motors.

In the negotiations the possibility of outsourcing the entire motor production is also being evaluated as an alternative to own production. At the end of 2003, the production of small electric motors at KCI Motors’ Tammisaari unit in Finland was outsourced to a long-term external cooperation partner.

The efficiency increasing measures will entail personnel reductions. According to the current estimate the required personnel reductions are estimated to affect the entire personnel of KCI Motors Oy. Restructuring of the production will create new positions, which can be offered to part of the personnel of KCI Motors Oy. The possibilities of repositioning some of the personnel to other units within the Group are also being evaluated.

KCI Motors Oy is located in Hyvinkää, Finland and employs 85 people.

Further information can be obtained from

Stig Gustavson, President and CEO, KCI Konecranes Plc, tel. +358-400 411119
Timo Mattila, Managing Director, KCI Motors Oy, tel. +358-20 427 3100

KCI Konecranes is a world leading engineering group specializing in advanced overhead lifting solutions and maintenance services. Group activity is organized along three business areas: Maintenance Services (47% of Group sales) Standard Lifting Equipment (26%) and Special Cranes (27%). In 2002, Group sales totalled EUR 714 million with over 4350 employees in 34 countries all over the world.