---

Neles Controls to Reorganize Helsinki Works Factory Services

14 May 1998

Neles Controls to Reorganize the Factory Services at Its Helsinki Works

    HELSINKI, Finland, May 14 -- Rauma Corporation's
Neles Controls, which manufactures valves and flow
control systems, is focusing on its core business activities, digital control
and automation solutions and services.  Accordingly, the business group has
agreed to transfer its cleaning and packaging functions and some of the
production services at the Helsinki Works to external service providers.
    Neles Controls will transfer its production services, excluding property
maintenance, to ABB Service Oy, which specializes in these services.
Packaging operations will be transferred to Classic Laite Oy, which
specializes in wood and board packaging and packaging plant services.
Cleaning will be transferred to ISS Suomi Oy, which has been responsible for
cleaning at Neles Controls' positioner factory and other facilities.  The
transfer of business applies to these functions, as well as their fixed assets
and inventories.  The Neles Controls personnel who are currently employed in
these functions will transfer to the new companies, retaining their existing
employee status.  The arrangement will affect 47 employees.
    In addition, factory services at the Helsinki Works, as well as the
functions of the property management and production engineering department,
will be incorporated under a company named Neles Palvelut Oy.  About
50 employees will transfer to the new company, retaining their existing
employee status.  Risto Sulanto will serve as Managing Director of this
company.  He will also continue as Administrative Director of the Helsinki
Works.
    Neles Controls Group had net sales of FIM 1.9 billion in 1997 and about
2,400 employees.  The business group has manufacturing plants in Finland, the
USA, Mexico, Brazil, France and the UK, as well as a manufacturing joint
venture in China and sales offices in 30 countries.
    In addition to Neles Controls, Rauma Corporation's other business groups
are Timberjack (forest machines), Sunds Defibrator (fiber processing
technology and equipment), and Nordberg (rock crushing equipment).  Rauma had
net sales of FIM 10.9 billion in 1997 and about 10,000 employees.  Operations
outside Finland accounted for 91 per cent of net sales.

SOURCE  Rauma Corporation