OUTOTEC OYJ STOCK EXCHANGE RELEASE, JANUARY 16, 2008 AT 10.00 AM
Outotec intensifies development of its services and after sales business
One of Outotec's strategic goals is to grow its Services and After Sales business and to become the lifetime service partner for its customers. The targeted growth will increase the share of value-added services in sales and balance out some of the cyclicality related to the capital investments of the mining and metals industry.
Outotec has now specified its growth target for the Services and After Sales business and aims to significantly grow the business to the annual level of EUR 250-300 million by the end of 2010.
In order to accelerate the growth and to achieve this target the following measures have been taken:
- Jari Rosendal, President of Outotec's Minerals Processing division and member of Executive Committee, is responsible for the development and growth of the Services and After Sales business in addition to his divisional responsibility,
- Kari Suninen has been appointed Vice President - After Sales Services to develop the after sales business aggressively on corporate level,
- Outotec has strengthened its resources in various locations around the world during 2007 and will continue to do so also in 2008,
- Outotec is looking to grow the service business through acquisitions, and
- the company is developing new service products and improving its internal processes.
Outotec's Services and After Sales business consists of spare part services, maintenance contracts, process expert services, certain engineering services and studies, plant audits, debottlenecking, upgrading and customer training. The sales volume of this business was some EUR 80 million in 2007 (2006: EUR 55.3 million). The Services and After Sales business is included in the figures of Outotec's three business divisions and the total business volume is reported on the Group level.
"We have delivered numerous plants and equipment over the years to our customers around the world and provided spare parts and expert services to these plants. During the past few years we have invested in developing the services. Now we want to speed up the growth and make the Services and After Sales a considerable part of our business", explains Tapani Järvinen, CEO of Outotec.
For further information please contact:
Tapani Järvinen, CEO
tel. +358 20 529 2000
Jari Rosendal, Executive Vice President - Services and After Sales, President - Minerals Processing division
tel. +358 20 529 2700
Eila Paatela, Vice President - Corporate Communications
tel. +358 20 529 2004, mobile +358 400 817198
OMX Nordic Exchange Helsinki