11 October 2012 11:42 [Source: ICIS news]
LONDON (ICIS)--Kemira has confirmed it will cut 152 jobs in Finland following co-determination negotiations as part of a previously announced restructuring programme, the water chemicals firm said on Thursday.
The job losses will be carried out by the end of October, the company added.
The negotiations concerned Kemira's sites in Helsinki, Espoo, Oulu, Sastamala, Kuusankoski, Joutseno, Vaasa and Harjavalta. As part of the job cuts, 79 employees will leave the company through pension schemes.
In July, Kemira announced it could cut up to 600 jobs as part of a global restructuring programme, called Fit for Growth, to improve profitability, lower costs and accelerate growth in emerging markets.
It was initially estimated that around 260 of the job cuts could be in Finland, however, the company on Thursday said the targeted cost savings for Kemira's sites in Finland "will be achieved with fewer redundancies than originally anticipated".
The restructuring programme aims to cut annual costs by around €60m ($77m) a year once it is fully implemented, with redundancies accounting for 50% of the expected savings.
Last month, Kemira put 14 of its manufacturing sites under review as part of its savings plan. The company expects consolidation of its manufacturing network and operations to contribute to the remaining half of the annual cost savings.
“The expected €60m[/year] cost savings impact of the programme will occur as follows: €10m in 2012, €50m in 2013 and €60m in 2014,” Kemira said.
The ultimate goal of the programme is to achieve an earnings before interest and tax (EBIT) margin of at least 10% in 2014.
Kemira said the expected restructuring charges connected to the programme amount to €85m of which €35m will be cash cost and €50m write-downs.
The company added that organisational restructuring affecting Kemira's sites outside Finland will be completed in each country according to local legislation.
($1 = €0.78)
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