Outokumpu Begins to Implement Efficiency Improvements
05/19/2011 - Outokumpu has begun statutory negotiations after recently announcing plans to improve profitability, gain more efficiency, and remove overlapping activities in sales, supply chain and supporting functions in Europe.
Outokumpu has begun statutory negotiations after recently announcing plans to improve profitability, gain more efficiency, and remove overlapping activities in sales, supply chain and supporting functions in Europe.
The company said it has now concluded statutory negotiations in Finland. Negotiations and the consultation process are to be finalized in other major operating countries over the next couple of weeks.
As a result of the negotiations, the job reductions in sales, supply chain and supporting functions in Europe will be in the range of the original plan, which is some 350 jobs globally by the end of 2011. Job reductions in Finland and Sweden are also expected to be in the range of the original plans, including about 90 jobs in Finland and 80 in Sweden.
The company is estimating cost savings of EUR 27 million per year as of 2012. Non-recurring costs of EUR 18 million related to the job reductions will be booked in the second-quarter 2011 accounts.
Outokumpu operates in 34 countries and at the moment employs 8100 people.
Outokumpu is a global leader in stainless steel with the vision to be the undisputed number one. Customers in a wide range of industries use the company’s stainless steel and services worldwide. Outokumpu employs some 8000 people in more than 30 countries, and its head office is located in Espoo, Finland.
