Stock Exchange Releases
Tulikivi plans to relinquish its Kermansavi dishware business and the production of building stone by the end of 2011. The company also intends to give up its excavation and loading equipment used in soapstone quarrying and to increase the outsourcing of quarrying operations.
The growth strategy of Tulikivi Corporation, a well-known manufacturer of heat-retaining fire-places and interior stones, will be to focus on the manufacture of its fireplace, sauna and interior stone products, the further development of product concepts, and marketing to consumers.
For this reason Tulikivi plans to relinquish its dishware business and the production of building stone, and to concentrate on production within its natural stone product business. The building stone products have included facades, paving and other subcontracting work for construction and stone firms.
The intention is also to increase the subcontracting of soapstone quarrying. This will be accompa-nied by the relinquishing of excavation and loading equipment used in soapstone quarrying.
The company aims to focus on its core business and the improvement of profitability. By giving up some of its businesses Tulikivi will gain the opportunity to increase investments in new product groups and distribution, as envisaged by its growth strategy.
The dishware and building businesses recorded net sales of approximately EUR 3 million in 2010, and operated at a substantial loss.
It is estimated that about 50 employees will be affected by the rearrangements. Accordingly, Tulikivi will begin co-operation negotiations in the natural stone product business, quarrying and the Heinävesi factory.
Board of Directors
Matti Virtaala, Chairman of the Board
Distribution: NASDAQ OMX Helsinki
For further information please contact: Tulikivi Oyj, 83900 Juuka, tel. 0207 636 000, www.tulikivi.com
– Matti Virtaala, Chairman of the Board
– Heikki Vauhkonen, Managing Director
Tulikivi comprises the Tulikivi Corporation, which is a listed family enterprise, and its subsidiaries. Tulikivi is the world´s largest manufacturer of heat-retaining fireplaces. Tulikivi has four product groups: Fireplaces, Saunas, Interior & Design and Utility Ceramics. Tulikivi and its customers value wellbeing, interior design and the benefits of bioenergy. Tulikivi´s net sales are slightly under EUR 60 million, of which exports account for about half. Tulikivi employs approximately 500 people.