On February 26, 2007, Tulikivi Corporation begins codetermination
negotiations in order to complete the integration of subsidiary
Kermansavi Oy. The planned personnel reductions will also enhance
efficiency in Kermansavi’s utility ceramics business and balance
out seasonal fluctuations in demand for Tulikivi’s soapstone
fireplaces.

The codetermination negotiations will affect all staff at
Kermansavi Oy. Negotiations will also be conducted with Tulikivi
Corporation personnel at the soapstone production facilities in
Juuka, Suomussalmi and Kuhmo, and with personnel in Tulikivi’s
fireplace sales organisation. Now that Kermansavi Oy’s operations
have been integrated, the reductions aim to remove any overlaps
arising from its acquisition.

Codetermination negotiations will be conducted separately at both
Tulikivi Corporation and Kermansavi Oy. Personnel cuts and layoffs
of fewer than ten people will be negotiated at Kermansavi Oy. In
spite of the downscaling, new product collections will be brought
to market.

Negotiations for redundancies of less than ten people will be
carried out in Tulikivi Corporation’s sales organisation.
Preparations are also being made for downsizing measures in
soapstone production, which will mainly be targeted at night and
weekend shifts.

A listed family company, Tulikivi Corporation and its subsidiaries
form the Tulikivi Group, the world’s largest manufacturer of heat-
retaining fireplaces. The Group is known for its Tulikivi
soapstone fireplaces and natural stone products as well as its
Kermansavi ceramic fireplaces and utility ceramics. The Group’s
revenue amounts to approximately EUR 80 million, about half of
which is accounted for by exports. The Group owns seven production
plants and employs over 700 people. www.tulikivi.com

TULIKIVI CORPORATION

 

Juha Sivonen
Managing Director

Distribution: Helsinki Stock Exchange
Central media

For additional information, contact: Tulikivi Corporation’s
Managing Director Juha Sivonen, tel. +358 207 636