18 September 2012 15:03 [Source: ICIS news]
LONDON (ICIS)--Kemira has put 14 of its manufacturing sites under review as part of a consolidation and savings plan, the CEO of the Finland-based chemicals firm said on Tuesday.
Kemira expects that consolidation of its manufacturing network and operations will contribute about half of the €60m ($79m) in annual cost savings it announced in July, CEO Wolfgang Buchele said in an update. He did not identify which sites are being reviewed.
The remaining 50% of the saving programme – called “Fit for Growth” – will be achieved through redundancies, Buchele said.
The ultimate goal of the programme is to achieve an earnings before interest and tax (EBIT) margin of at least 10% in 2014, he said.
While Kemira’s main focus is on the Fit for Growth programme, the company has also started to analyse how it should look in 2020, Buchele added.
Also on Tuesday, Kemira announced that it will leave its outlook for 2012 unchanged, with revenues and operative EBIT expected to be at about the same levels as in 2011.
“In the near term, uncertainty in Europe and a slowdown in global economic growth may affect the demand for our products in our customer industries,” the company said.
($1 = €0.76)
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