OUTOTEC OYJ STOCK EXCHANGE RELEASE, FEBRUARY 9, 2010 AT 9.00 AM
Outotec announces new operational model, Executive Board and measures to improve efficiency
In order to accelerate the strategy implementation Outotec launches a new operational model and Executive Board as of April 1, 2010. Additionally the company will start new efficiency improvement measures targeting at EUR 25 million annualized savings in operational fixed costs.
"Outotec's objective is to expand the offering and increase value capture in our current core business of minerals and metals processing solutions and services. In addition, our objective is to grow in new businesses such as energy sector and industrial water treatment. We are developing our operational model in order to align our organizational structure with these strategic growth objectives and to improve the cost efficiency of our operations", Outotec's President and CEO Pertti Korhonen says.
New operational model
As of April 1, 2010 Outotec's businesses will be reorganized into four business areas, three of which are reporting segments. The business areas are:
- Non-ferrous Solutions, consisting of businesses relating to the processing of copper, nickel, zinc, lead, gold, silver and platinum group metals as well as industrial minerals.
- Ferrous Solutions, consisting of businesses relating to the processing of iron, steel and ferroalloys as well as titanium feedstock.
- Energy, Light Metals and Environmental Solutions, consisting of businesses relating to sulfuric acid plants, gas cleaning, alumina, aluminium and light metals processing, applications for heat recovery systems, coke, bioenergy, oil shale and sands as well as industrial water treatment.
- Services, focusing on growing and developing the service business globally and providing life-cycle services to Outotec's customers. The Services business will be included in the figures of the three other business areas, and its sales volume will also be reported separately.
Sales and delivery operations in geographical Market Areas will be organized under global Market Operations organization that operates in matrix with the Business Areas. Additionally, global Shared Support Functions are responsible for providing an effective business platform for Outotec.
The new operational model is geared to deliver growth both in all Market Areas and in all Business Areas. In addition, the matrix structure with globally shared support functions will allow a more flexible organization and more efficient use of Outotec's resources.
New Executive Board
The Board of Directors of Outotec has appointed a new Executive Board for the company to replace the current Executive and Management Committees. The new Executive Board will take charge when Outotec shifts into the new operational model on April 1, 2010.
The members of the Executive Board with responsibility areas are:
- Pertti Korhonen, President and Chief Executive Officer, Chairman of the Executive Board
- Jari Rosendal, Executive Vice President, President of Non-ferrous Solutions business area
- Pekka Erkkilä, Executive Vice President, President of Ferrous Solutions business area (as of May 1, 2010)
- Peter Weber, Executive Vice President, President of Energy, Light Metals and Environmental Solutions business area
- Kalle Härkki, Executive Vice President, President of Services business area
- Martti Haario, Executive Vice President - Market Operations
- Vesa-Pekka Takala, Chief Financial Officer
- Tapio Niskanen, Senior Vice President - Business Infrastructure
- Ari Jokilaakso, Senior Vice President - Human Capital
Vice President, Corporate Strategy nomination will be announced later.
Sami Lindström, General Counsel, acts as Secretary to the Executive Board and Board of Directors.
Efficiency improvement measures
Outotec will start new measures to improve internal efficiency targeting at EUR 25 million annualized savings in operational fixed costs compared to the cost level of the fourth quarter of 2009. Part of these savings will be achieved through organizational restructuring. Initial personnel reduction estimate is globally 170 employees, of which approximately 120 employees in Finland. The restructuring will lead to one-time provisions of maximum EUR 20 million during the first half of 2010. The integration of Larox businesses is included in the above mentioned savings and provisions figures.
For further information please contact:
Pertti Korhonen, President and CEO
Tel. +358 20 529 211
Eila Paatela, Vice President - Corporate Communications
tel. +358 20 529 2004, +358 400 817 198
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