Kemira announces global restructuring program "Fit for Growth" within the context of a new organization
Stock Exchange Release
July 26, 2012 at 8.30 am (CET+1)
Kemira Oyj announces a global restructuring program "Fit for Growth" to improve the company's profitability, internal efficiency and to accelerate growth in the emerging markets. The cost savings target with the planned program is EUR 60 million on an annualized basis once the program is fully implemented. The goal of the planned program is to reach Kemira Group's financial targets for revenue growth and EBIT margin. The growth target for Kemira is above 3% in the mature markets and above 7% in the emerging markets. Kemira's EBIT margin target is at least 10%. Non-recurring charges related to the "Fit for Growth" program are estimated to be around EUR 85 million. These charges are expected to be accounted for within the next four quarters.
The planned group-wide restructuring program is based on the following key measures:
- Reducing internal complexity by renewing and simplifying the organizational structure in order to foster accelerated growth, innovation and application focus
- Improving internal efficiency by reducing organizational layers and by placing substantial responsibility into the regions by implementing regional business units reporting to the segment heads with full profit and loss responsibility
- Optimizing and rebalancing the manufacturing network
The implementation of these measures may ultimately lead to the reduction of up to 600 positions globally, from which approximately 250 could be reductions in Finland. Kemira will initiate the co-determination negotiations according to each country's local legislation. Kemira had 5,181 employees worldwide at the end of June 2012.
Kemira will also consolidate its management structure. As of October 1, 2012, there will be one Management Board lead by the CEO. This Board will replace the previous Strategic Management and Business Management Boards. The Management Board is responsible for securing the long-term strategic development of the company. The members of the Management Board as of October 1, 2012 are listed in the attached chart.
"Since I assumed responsibility as the CEO of Kemira, my most evident key priorities for Kemira going forward are: improving profitability, accelerating growth in Asia and South America without sacrificing business opportunities in the mature markets and sharpening the strategy. We have started to work in all three areas. The second quarter results underlined the fact that these restructuring plans are needed in order to ensure sustainable profitability and competitive strength for Kemira," says Wolfgang Büchele, CEO of Kemira.
"I understand that these plans may affect people and their families, and we will support our people during these changes," says Wolfgang Büchele.
For more information, please contact
Leena Lie, Vice President, Communications
Tel. +358 10 862 1153
Tero Huovinen, Director, Investor Relations
+358 10 862 1980
Kemira is a global over two billion euro water chemistry company that is focused on serving customers in water-intensive industries. The company offers water quality and quantity management that improves customers' energy, water, and raw material efficiency. Kemira's vision is to be a leading water chemistry company.