Aker Finnyards downsize

Following earlier announcements, Aker Yards will combine its entities in Finland into one organization and, in order to cover the costs of this restructuring, a non-recurring provision in the level EUR 18-20 million will be booked against the fourth quarter results. Future synergy effect from the combination is expected to be in the range of EUR 20 million annually. This will mainly be a result of reducing overlapping activities, improving productivity, a more flexible cost-base and concentrating on core competences.

The company has sent out an invitation to enter into formal negotiations with the employee representatives, to reduce the workforce at the three yards in Finland. The preliminary estimation of the required reduction in the workforce is approximately 700 people in all. Negotiations are expected to start in mid November, and are anticipated to be finalized before mid January 2005. The company last year concluded a corresponding, successful restructuring in Germany, and a similar process was recently implemented for the yards on the Northwest coast of Norway.