Vacon is starting negotiations with its white-collar personnel working in the Vacon Group's parent company Vacon Plc in Finland as part of a large global cost-savings plan in the Group. During the years 2012-2013, the Group aims to achieve annual savings equal to 60 man-years in its parent company and 10 man-years in the Vacon subsidiaries. The invitation to the negotiations in the parent company was given to Vacon's white-collar employee representatives yesterday, 12 December 2011.

The negotiations affect approximately 420 white-collar employees in the Vacon Group's parent company in Finland. The negotiations will deal with and aim to agree on measures which can be used to adjust business operations to the market situation. The goal is to find the cost-saving measures which ensure the company's competitiveness as well as developing and launching new products to the market. In addition to improving efficiency in operations, among the measures to be initially considered are reductions in definite-duration office personnel, voluntary leave of absence, working part-time, exchanging holiday pay for time off, outsourcings, temporary lay-offs and personnel reductions. At the same time, Vacon will consider the re-organization of its global operations.

The need for personnel reduction is estimated at 60 persons at most. Any temporary lay-offs and part-time work are estimated to affect not more than approximately 400 white-collar employees of the company.

In the background of the need for the alignment are economic and production related reasons as well as the possible re-organization of Vacon's operations. The need for the alignment is caused by the declined order intake and the poor predictability of market prospects in the future. Vacon's financial position has deteriorated in the second half of 2011 and the company reduced its guidance for the year 2011 on 12 December 2011. The demand for Vacon's wind power products started to decline already in June 2011, and it has not shown any sign of recovery. Additionally, during the fourth quarter of the year, the demand for motor control products has also weakened.

"The reason for the weakened demand is in the prolongation and escalation of the European finance crisis. At the moment, it is particularly difficult to estimate how the markets will develop. Therefore, we will have to act now and ensure that we will survive with our feet dry if the crisis still deepens and drags on. This is the only way we can make sure that we are prepared when the market picks up," concludes Vesa Laisi, Vacon's President and CEO.

In Finland, Vacon employs altogether some 750 people in Vaasa, Tampere and Vantaa. The company will inform of the results of the negotiations after they are completed.

SCA will invest a total of SEK 540m to strengthen kraftliner production in Munksund, Piteå, Sweden. The intention is to upgrade the paper machine and refurbish the soda-recovery boiler.

The main aim of the investment is to increase production of the share of value-added products, such as White-Top Kraftliner, which, for example, is used for packaging of fast-moving consumer goods with high-quality print.

As a result of the SEK 540m investment, Munksund will be able to increase its total annual kraftliner capacity to 415,000 tonnes from the current level of 360,000 tonnes. The bulk of the investment, SEK 400m, will be used to upgrade the paper machine. The remaining SEK 140m will finance the replacement of the pressure vessel in the soda-recovery boiler, which will enhance heat recovery and enable increased future output.

The upgraded equipment is expected to be fully operational during 2013.

“The investment facilitates increased production of White-Top Kraftliner, a strong speciality paper for the corrugated-board industry which is experiencing a high growth rate. The investment is in line with the company’s strategy; which is to increase production and sales of products and services with a higher degree of refinement that add value for our customers,” says Jan Johansson, SCA’s President and CEO.

Vacon reduces its guidance for 2011 and now estimates that revenues in 2011 will increase by 10-15% and the operating profit margin will be about 6-7%. Earnings per share are expected to decline from 2010.

Previously Vacon estimated that revenues in 2011 would increase by 10-20% and the operating profit margin would rise from 2010. Earnings per share were expected to improve considerably from 2010.

The weakening of Vacon's earnings in 2011 is influenced by two risks, and changes in the AC drive market. Firstly, one of Vacon's solar energy clients is still arranging financing to pay a major debt to Vacon that is past its due date. Vacon will continue actions to secure its receivables but prepares for possible credit losses. Secondly, legal proceedings are in progress at the subsidiary in China relating to the company's customs clearance procedures. Vacon has made in total a MEUR 10 provision related to these risks. The company has informed of the above mentioned risks already earlier in its interim reports.

Additionally, reasons for revising the guidance are the weak order intake of renewable energy products during the second half of the year and the weakening of the demand for its motor control products during the fourth quarter.

"The demand for wind power products in China started to decline already in June this year, and, for the time being, it has not shown any sign of recovery. Additionally, during the fourth quarter, the demand for motor control products has weakened. The reason for the weakened demand is in the prolongation and escalation of the European finance crisis. At the moment, it is particularly difficult to estimate how the markets will develop," Vesa Laisi, Vacon's President and CEO concludes.

Vacon will initiate measures to save cost and to secure profitability in its global operations. Vacon maintains its long-term financial targets according to which the company's goal is to achieve revenues of EUR 500 million in 2014. Its long-term profitability target is an operating profit of 14% and a return on equity of more than 30%.

Vacon Plc

Per Lundeen has asked the Board of Directors of the AR Packaging Group, to initiate the search for a new CEO after twelve years as CEO of A&R Carton. Per Lundeen will continue as CEO until a successor is in place, which is expected to be during the spring of 2012. He will then be appointed member of the Board of Directors.

- I have experienced twenty exciting and positive years in the company, of which the last twelve as CEO. The time to hand over the operational responsibility is carefully selected; after the recent merger of A&R Carton and Flextrus. In the future I intend to spend more time on board memberships, consultancy, and my own business, says Per Lundeen.

- My feelings for AR Packaging Group, its employees and customers are very strong and I will be actively involved in the search for my successor. The new CEO must be given the opportunity to put his or her personal stamp on the job. I will be able to give advice and help with specific projects from my position in the Board of Directors.

Stig Gustavsson, Chairman of AR Packaging Group, comments on the change of CEO: - Per Lundeen has successfully led AR Carton and AR Packaging Group during a period of strong growth and important restructuring. During this time the company has developed into one of the leading packaging companies in Europe. We are pleased that Per has agreed to be a member of the Board of Directors. There is now a solid foundation for a new CEO to further develop the company.

Jan Ohlsson, Vice Chairman of the AR Packaging Group and Founding Partner at Accent Equity Partners AB: - Per Lundeen has a large industrial network and industry knowledge, which we are happy to continue to have access to through the Board of Directors. From our point of view, we also hope to benefit from Per's broad expertise in other investments.

Effective January 1st 2012, Voith Paper Fabric & Roll Systems in Europe will increase the price for its products and services by an average of 3.8 %. This adjustment is necessary as the price increases for raw material, energy and transportation cannot be compensated by internal efficiency increases and cost saving measures only. In addition, Voith Paper will sustain a high level of value added solutions to its customers and therefore will continue to invest in Research & Development to offer innovative and sustainable products.

Voith Paper is a division of the Voith Group and the leading partner to and pioneer in the paper industry. Through constant innovations, Voith Paper is optimizing the paper manufacturing process, focusing on developing resource-saving products to reduce the use of energy, water, and fibers.

Voith sets standards in the markets energy, oil & gas, paper, raw materials and transportation & automotive. Founded in 1867, Voith employs almost 40,000 people, generates € 5.2 billion in sales, operates in about 50 countries around the world and is today one of the biggest family-owned companies in Europe.

No Swedish Christmas is complete without Aladdin – a classic chocolate box whose journey starts in the UK and ends under Christmas trees across Sweden.

The Aladdin box is made from Incada Silk, a multi-layered paperboard that is produced by Iggesund Paperboard in Workington, in the north of England. And at the factory production is stepping up ready for the festive season. From Workington, the paperboard is shipped to Iggesund Paperboard's customer Å&R Carton, but sales manager Bengt Johansson also sees the chocolate producer Marabou as his customer.

"There is a huge amount of openness and trust between us, and we have a good dialogue with both Å&R Carton and Kraft Foods, who own the Marabou brand," he explains. "We often discuss with them how we can develop the paperboard for improved printing and runnability in the machines. That's important since the production and packing are fully automated. It's also equally important that the chocolates don't pick up any other flavours along the production chain."

The Aladdin box dates back to the late 1930s and Iggesund Paperboard's partnership with Å&R Carton and Kraft Foods also goes back a long way, to at least the 1970s or 80s, according to Bengt, who has been around for the past ten years himself.

"They are important customers of ours, and of course Incada Silk is used in other chocolate packaging too," he concludes.

Metso has won a patent infringement lawsuit against Terex Corporation, one of its subsidiaries and two of its dealers in the United States. On December 9, 2011, the Federal District Court for the Eastern District of New York affirmed the jury’s verdict of December 6, 2010 (see Metso’s stock exchange release of December 7, 2010), that the defendants had willfully infringed Metso’s U.S. patent relating to mobile crushing and screening machines. Due to the willfullness of the infringement, the court doubled the original damages award to USD 31.6 million covering the infringing sales from March 2000 through October 2007. In addition, the defendants will have to pay for additional compensation covering infringing sales after October 2007, which will be accounted for later and also doubled. The final compensation for Metso will also include interest.

In July 2011, the court issued an order permanently barring the defendants from marketing their mobile screening machines that were found infringing Metso’s patents.

If the court decision is appealed, the lawsuit will continue in the appeals court. Metso will book the compensation in its financial statements only after the final outcome of the lawsuit is clear.

Metso will continue to be active in protecting its intellectual property rights globally, acting with the objective of enhancing fair competition.

Ecolab Inc. was named an Outstanding Enterprise in Delivering Corporate Social Responsibility for the second consecutive year by China Business News (CBN), China's premier business media group. At the CBN 2011 China Corporate Social Responsibility Award ceremony today in Guangzhou, China, Ecolab was presented with the Top 20 Outstanding Enterprise Award for the company's contributions in driving social responsibility to all stakeholders in China.

"As the global leader in water, hygiene and energy technologies and services, corporate social responsibility is a core value within our vision to make the world cleaner, safer and healthier," said Sam Hsu, Ecolab senior vice president and general manager of Greater China. "We continue to expand our presence in China, and as we're doing so, we're helping to advance the economic, social and environmental well-being of the communities in which we operate."

The 2011 CBN Corporate Social Responsibility Award program was judged by a panel of experts from research institutes, third-party certification agencies and the business community in China. The panel reviewed 280 leading companies operating in China to determine the enterprises that have best demonstrated integrity and high ethical standards through their corporate social responsibility practices.

With 2011 annualized sales of $11 billion and more than 38,000 employees, Ecolab Inc. (NYSE: ECL) is the global leader in water, hygiene and energy technologies and services that provide and protect clean water, safe food, abundant energy and healthy environments. Ecolab delivers comprehensive programs and services to the food, energy, healthcare, industrial and hospitality markets in more than 160 countries. More Ecolab news and information is available at www.ecolab.com.

Source: Ecolab Inc.