Finland's Kemira to cut 600 jobs in global restructuring program

26 July 2012 07:51  [Source: ICIS news]

LONDON (ICIS)--Kemira could cut up to 600 jobs as part of a global restructuring program to improve profitability, lower costs and accelerate growth in emerging markets, the Finland-based water chemical firm said on Thursday.

Around 250 of the job cuts could be in Finland, it added.

Kemira had 5,181 employees worldwide at the end of June 2012.

The company said it will "initiate the co-determination negotiations according to each country's local legislation".

The group's global restructuring program called "Fit for Growth" aims to cut annual costs by around €60m ($73m) a year once it is fully implemented.

Kemira said the goal of the planned program is to reach it's financial targets for revenue growth and earnings before interest and taxes (EBIT) margin.

"The [revenue] 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%," it added.

Non-recurring charges related to the program are estimated to be around €85m, which are expected to be accounted for within the next four quarters, Kemira said.

"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,” said Wolfgang Buchele, CEO of Kemira.

"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," he added.

"I understand that these plans may affect people and their families, and we will support our people during these changes," Buchele said.

Kemira announced it will also consolidate its management structure. As of 1 October 2012, there will be one management board led by the CEO. The board will replace the previous strategic management and business management boards.

($1 = €0.82)

By: Franco Capaldo
+44 (0)20 8652 3214

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