Exel Composites initiates employee negotiations concerning the closure of one of its manufacturing facilities in Nanjing, China

EXEL COMPOSITES PLC – – – INSIDE INFORMATION – – – 28 FEBRUARY 2022 – at 09:00 – EET

Exel Composites has initiated employee negotiations concerning the closure of its manufacturing facility located in downtown Nanjing, China. The negotiations concern 46 employees. In addition to this facility, Exel Composites has another manufacturing site in the Nanjing area, where the production of the site to be closed is intended to be transferred.

The potential closure of the Nanjing site would result in annual synergies and cost savings totaling approximately EUR 0.7 million. According to preliminary estimations, the closure and transfer of production would result in a one-time cash cost of approximately EUR 1.2 million and a non-cash asset write-off of approximately EUR 1.0 million.

Furthermore, Exel Composites is planning to sell the real estate of the factory to be closed. The aggregated one-time impact of the closure and the sale of the facility is estimated to be positive on Group operating profit and cash flow in 2022.  

Vantaa, 28 February 2022

Exel Composites Plc
Riku Kytömäki, President and CEO