Finland: Talvivaara bankruptcy would directly eliminate 1,600 jobs says CEO

(Sini Salmirinne / Yle )
(Sini Salmirinne / Yle )
Talvivaara CEO Pekka Perä said Friday that bankruptcy of his group would throw 1,600 people in the production chain out of work, and would indirectly affect two to three times as many.

Talvivaara Group management believes that the company still has a future, despite the serious problems it faces. However, CEO Pekka Perä told the press Friday that the situation requires immediate action.

“The situation is critical, but we have a healthy business in that area. We are now in a temporary hole. The problems started a year ago with the [waste water holding pool] dam leak. Problems have been caused by nickel being cheap and the dollar down. The result is a difficult financing situation,” explained Perä.

Deputy CEO Saila Miettinen-Lähde said that any court-supervised overhaul of the group may last six months. The process can take up to a year.

Perä added that rationalization and reorganization are a better alternative for the future of Talvivaara than bankruptcy. A bankruptcy would throw hundreds of people out of work.

“If we were to go bankrupt, there are around 1,600 people in our production chain. The indirect effects would be two to three times as high,” Pekka Perä estimated.

Related Links:

Finland: Talvivaara funds running low, Yle News

Finnish mine to lay off up to 250 workers, Yle News

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