Sweden’s Perstorp announces restructuring plan, 111 redundancies

LONDON (ICIS)–Sweden-headquartered chemicals company Perstorp announced on Thursday a raft of restructuring measures, including cost-cutting measures, the appointment of several new management team members, and the planned redundancies of 111 employees.

Citing deteriorating financial performance and eroding margins, company CEO Jan Secher said that the company’s operations would be realigned into two units: intermediates and derivatives, and specialties and solutions. The move was driven by a “clear difference” in the behaviour of intermediates customers and specialties customers, Perstorp added.

“It is essential to point out that our financial performance has deteriorated over the last years, to a point where improvements are simply required,” Secher said.

“As a consequence we are forced to consider not only forward-looking measures but also anticipated reduction in personnel. We regret this and are committed to do this in a most respectful manner and in full cooperation with the union representatives,” he added.

The company has also hired three new executive vice presidents (EVP) from outside the company.

Gorm Jensen, previously of Spolchemie, is to join as EVP BA intermediates and derivatives from 1 February; Joke Driessen will join as EVP of operations on 1 March from her previous position as director of Shell Nederland Chemie; and Wolfgang Laures will join the company from Avery Dennison as of 1 April to serve as EVP for supply chain.

The anticipated redundancies comprise 7% of the group’s employee base, with 62 of the positions based in Sweden. Negotiations with local union and representatives in other countries are ongoing, with the final outcome of the redundancies subject to the conclusion of those discussions, Perstorp said.