Outokumpu starts implementation of the efficiency improvements announced in April
16 May 2011 at 2.00 pm EET
Outokumpu started statutory negotiations on 6 April 2011 after announcing plans to improve profitability, gain more efficiency as well as remove overlapping activities in sales, supply chain and supporting functions in Europe. Statutory negotiations have now been concluded in Finland and negotiations and consultation process will be finalised in other major operating countries in the next couple of weeks.
As a result, 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, about 90 jobs in Finland and 80 in Sweden. Cost-savings are estimated to be 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 8 100 people.