OUTOTEC OYJ STOCK EXCHANGE RELEASE APRIL 25, 2018 at 9:10 AM
Outotec simplifies its organization and processes to accelerate business growth
Outotec takes the next steps in implementing its strategy to achieve 2020 targets. Simplifying and streamlining the organization will lead to a more efficient and agile way of working with a clear focus on customers.
The planned changes clarify the roles and responsibilities and include:
- Simplifying the structure of the segments with global end-to-end business responsibility
- Reducing management layers and streamlining global functions
- Simplifying business processes
"These changes are intended to accelerate growth as we further simplify and flatten our organization and give more decision-making power and accountability to business units. We also expect to get additional profit improvement from faster decision-making, more efficient deliveries and increased customer engagement," says Outotec's CEO Markku Teräsvasara.
The planned structural changes may lead to the reduction of approximately 200 positions globally. Employee cooperation negotiations will start immediately.
The impact of the simplification on Outotec's cost structure is estimated to be approximately EUR 25 million. The related restructuring costs are estimated to be EUR 12 million.
The current structure with two reporting segments, Minerals Processing and Metals, Energy & Water, remains unchanged, and the service business continues to be reported as part of these two segments.
The new organization is expected to become operational as of July 1, 2018. The changes will not impact Outotec's financial guidance for 2018.
For further information please contact:
Markku Teräsvasara, President & CEO
Tel. +358 20 529 211
Eila Paatela, head of Corporate Communications
Tel. +358 20 529 2004, mobile +358 400 817198