Companies | The steel company Ovako Imatra started change negotiations, the need to reduce a maximum of 70 person-years

Steel company Ovako Imatra has started change negotiations, which may lead to a permanent reduction of up to 70 person-years of work. According to the company, this is a preliminary estimate and the need to reduce affects all personnel groups.

In addition, the change negotiations concern the possible extension of layoffs. The need is determined based on the development of the order backlog.

Ovako Imatra says that its business environment has changed strongly due to weakened demand and prevailing overcapacity. Change negotiations are aimed at strengthening the company’s profitability and competitiveness in the changed market situation.

“With the planned changes, the organization will be modified to better reflect the current situation and prospects”, Ovako Imatra says in the press release.

Company estimates that the change negotiations will end at the end of November. The goal is that the possible personnel reductions would have mostly been realized by the end of next May.

Ovako tells on their websitethat about 600 people from Ova work in the Imatra unit. The factory produces technically high-level steel for the needs of the automotive and engineering industries, among other things.