June 18, 2014 at 10.00 am EET
Outokumpu announced today changes in its operational model and Leadership Team. The purpose of the changes is to increase customer and market orientation, drive business performance and increase speed and accountability.
From September 1, 2014 Outokumpu will consist of five business areas with sales, production, and profit responsibility:
- Coil EMEA
- Coil Americas
- Quarto Plate
- Long Products
Quarto Plate and Long Products have formerly been business lines within the Specialty Stainless business area. Quarto Plate unit is a global leader in tailored quarto plate material with key operations in Sweden and in the US. It has 800 employees and an annual sales of around EUR 400 million in 2013. Long Products unit is focused on specialty stainless long products and has production operations in UK, Sweden and US. It has approximately 700 employees and an annual sales of around EUR 550 million in 2013.
Special Coil operations in Avesta and Nyby that have also been part of the Specialty Stainless business area will become part of Coil EMEA business area. Consequently, Specialty Stainless will cease to exist as a business area.
Outokumpu plans to report its third-quarter financial report according to a new segment structure. In addition to the five business areas, Outokumpu will continue to have strong group functions to drive group-wide efficiency and alignment in key business processes.
Says Mika Seitovirta, Outokumpu CEO: “During the past 18 months, we have focused heavily on restructuring and improving our financial position. We have made solid progress in our cost savings and ramp-ups, and significantly strengthened our balance sheet. While we will determinedly carry out all the ongoing restructuring and efficiency measures, we are at the same time shifting gears to accelerate further improvements in our business performance and customer orientation.”
The new operational model is not directly resulting in new job cuts. However, previously announced cost saving programs and efficiency measures that are planned to result in total reduction of 3,500 jobs globally by the end of 2017 remain valid.
Outokumpu Leadership Team will consist of following members as of September 1, 2014:
- Mika Seitovirta, CEO
- Reinhard Florey, CFO (Chief Financial Officer)
- Olli-Matti Saksi, Coil EMEA (as of July 1)
- Michael Wallis, Coil Americas
- Austin Lu, APAC
- Kari Tuutti, Long Products
- Kari Parvento, Quarto Plate
- Pekka Erkkilä, CTO (Chief Technology Officer)
- Johann Steiner, Human Resources, IT, Health and Safety
- Saara Tahvanainen, Communications & Marketing
Jarmo Tonteri, current head of Stainless EMEA and Specialty Stainless units, will continue as an executive advisor to the Group, and he will retire during the next 12 months in line with earlier plans. “Jarmo’s role in the transformation of Outokumpu has been invaluable. During 2011−2012 he restructured our specialty stainless business to reach profitability. Since June 2013 he has also led the EMEA business, successfully restructuring of our industrial setup in Europe. I want to thank Jarmo already at this stage for his strong leadership and contribution to Outokumpu’s transformation,” says Mika Seitovirta.
Outokumpu is a global leader in stainless steel. We create advanced materials that are efficient, long lasting and recyclable – thus building a world that lasts forever. Stainless steel, invented a century ago, is an ideal material to create lasting solutions in demanding applications from cutlery to bridges, energy and medical equipment: it is 100% recyclable, corrosion-resistant, maintenance-free, durable and hygienic. Outokumpu employs more than 12 000 professionals in more than 30 countries, with headquarters in Espoo, Finland and shares listed in the NASDAQ OMX Helsinki. www.outokumpu.com