Rettig ICC is considering the discontinuation of the production of heat emitters in Jakobstad in Finland
Rettig ICC is considering the discontinuation of the production of heat emitters in Jakobstad in Finland and intends to start employee consultation negotiations today.
- Due to long-term declining demand for steel panel radiators in Europe, overcapacity and high production costs, Rettig ICC has today announced that the company is considering stopping production of heat emitters in Jakobstad in Finland.
- A consultation process with employees will start today concerning up to 110 out of Rettig ICC’s 130 current employees in Jakobstad.
- In case of redundancies, about a quarter of the 110 employees concerned are likely to be entitled to early retirement.
- Rettig ICC intends to establish a “New Job” programme to support employees affected by a possible closure to find new employment opportunities.
Market analyses show that over the past seven years the demand for steel panel radiators in Europe has declined by over a third and has led to significant overcapacity. Production volumes of the radiators manufactured in Jakobstad have more than halved over the same period meaning over half of the plant’s capacity is unused.
To secure its competitiveness and to continue to reduce overcapacity of its plants, Rettig ICC is considering concentrating current production in Jakobstad to Rettig ICC’s other plants in Europe, mainly in Rybnik in Poland where production costs are lower and there is unused capacity.
The consultation negotiations do not cover Rettig ICC’s marketing, sales and customer service in Jakobstad.
During the consultation process, Rettig ICC intends to establish a “New Job” programme to support employees affected by a possible closure to find new employment opportunities.
For further information, please contact:
Hans Sohlström, Chairman of Rettig ICC: Tel. +358 (0)9 6188 3220 (available to answer questions from media today 8.5.2014 at 10.15-13.00 EET).
About Rettig ICC
Rettig ICC b.v., part of Rettig Group Ltd., is Europe’s leading supplier of heat emitters and indoor climate comfort. With 15 plants in 11 countries, Rettig ICC designs, manufactures and supplies radiators, underfloor heating, valves and controls to more than 50 countries, generating a turnover of about EUR 554 million.