Finland's Kemira to close Vaasa unit, cut jobs in EMEA region

23 April 2013 13:25  [Source: ICIS news]

LONDON (ICIS)--Finland-based Kemira will close its production facility in Vaasa, as part of plans to consolidate its paper chemicals production into larger production units, the water chemicals producer said on Tuesday.

The planned measures, which include the transfer of Vaasa's production to other units, may lead to the reduction of the entire site's staff by a total of 60 positions.

Kemira will initiate co-determination negotiations during April, aiming at closing the production in Vaasa by the end of 2013, it said. The company added that the annual cost savings for the planned site closure are expected to reach €5m ($6.5m) and the related non-recurring restructuring charges are expected to be approximately €15m.

“The objective is to optimise the capacity utilisation rate and efficiency of Kemira's process chemicals production network,” Kemira said.

Kemira also announced a plan to establish a multifunction business service centre in Gdansk, Poland, to serve all of Kemira's businesses in the Europe, Middle East, and Africa (EMEA) region. The plan impacts up to an additional 210 current positions in the EMEA region, of which up to 80 are in Finland.

The related non-recurring restructuring charges are expected to cost around €20m. Once fully implemented, Kemira said the annual cost savings target for the planned support functions reorganisation in the EMEA region is expected to be close to €10m.

"Kemira's support functions in EMEA today are scattered across several locations and are expected to benefit from process optimisation, centralisation, and improved cross-functional collaboration,” said Antti Salminen, executive vice president, supply chain management.

“The functions in scope of the planned business service centre currently operate out of six hubs and several other smaller locations in Europe. The planned service centre will support Kemira's targets of cost effectiveness, enable us to serve all our customers in EMEA in a unified way, and form a scalable base for profitable growth in the future,” he added.

($1 = €0.77)

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

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