97 employees of the Sports Goods Division and 16 employees of the
Maintenance Unit were given notice today due to the restructuring of the
Sports Goods Division of Viisnurk AS. This includes 30 employees who were
proposed to take up a job in other production units of Viisnurk as the
latter expand their operations.
The restructuring process will result in optimisation of the fixed costs
of the Sports Goods Division and termination of production of less
profitable ski types. At the net sales of 42.5 mil. kroons, the Sports
Goods Division of Viisnurk AS made a loss of 2 mil. kroons in nine months
of 2002.
The total cost of redundancies will be approximately 2 mil. kroons; the
company has applied to Estonian Unemployment Insurance Fund for partial
reimbursement thereof. In addition to that, the Sports Goods Division will
recognise the materials, semi-finished and finished goods and non-current
assets amounting to 6 mil. kroons, which will not be used in the following
periods, as a cost in 2002.
Reverting the operations of the Sports Goods Division of Viisnurk to
profit making within the year 2003 is the main goal of the restructuring
process.
Andrus Aljas
CFO
+372 44 78 355