Kemira announced on July 26, 2012 that it will start a global restructuring program "Fit for Growth" to improve the company's profitability, internal efficiency and to accelerate growth in the emerging markets. Kemira also announced that the implementation of the measures related to the program may ultimately lead to the reduction of up to 600 positions globally, from which approximately 250 could be reductions in Finland.

Kemira will start co-determination negotiations in Finland which will affect all employees working at the following group's Finnish sites: Helsinki, Espoo, Oulu, Sastamala, Kuusankoski, Joutseno, Vaasa and Harjavalta. The invitation to the negotiations was given to the employee representatives today, on August 6, 2012. At the end of June 2012, Kemira had 5,181 employees from which 1,259 were located in Finland.

"The number of employees affected by the possible personnel reduction has now been specified and the measures related to the program may affect approximately 260 employees' work in Finland. During the negotiations we will examine e.g. internal transfers, retirement arrangements and outsourcing. Although we are not planning to close our sites in Finland, the possibility of some direct layoffs cannot unfortunately be ruled out. The number of possible direct layoffs will be defined during the negotiations. Our aim is to complete the negotiations within the 6 weeks negotiation period," says Jukka Oinonen, Vice President, Human Resources, Finland.

The cost savings target with the planned "Fit for Growth" program is EUR 60 million on an annualized basis once the program is fully implemented. Non-recurring charges related to the "Fit for Growth" program are estimated to be around EUR 85 million. These charges are expected to be accounted for within the next four quarters.

Organizational restructuring also affects Kemira's sites outside Finland and the negotiations in the sites affected by the possible personnel reductions will proceed in each country according to the local legislation. Kemira has operations in around 40 countries.