Decisions on statutory negotiations initiated in October 2010 by Pöyry in Finland - operational excellence programme continues
(Thomson Reuters ONE) -
PÖYRY PLC Company Announcement 8 December 2010 at 9.00 a.m.
The first major implementation milestone has been reached relating to the
operational excellence programme aiming at improving the efficiency and quality
of operations and serving Pöyry's clientele in a cost-efficient way.
Pöyry has made decisions to adapt capacity and to improve its operational model
to be aligned with the current and future demand in Finland. These measures will
lead to an annual operating profit improvement of about EUR 15 million. The
majority of the impact will start from the beginning of 2011 onwards and the
rest gradually after that. Restructuring costs of EUR 7.5 million will be
recorded in the fourth quarter of 2010.
The statutory employee negotiations initiated in October 2010 in Pöyry's Finnish
operations resulted in the decision to reduce capacity of the currently active
workforce by about 270 persons. In addition, the capacity of the workforce that
has been temporarily laid off will be reduced by about 130 persons. The
implementation of these reductions will start immediately. Adaptation measures
also include pension arrangements, possible relocations, and to a smaller extent
also temporary lay-offs to adjust capacity.
Improvement of business support for Finnish operations will continue. In
addition to personnel cost the cost-savings relate to facilities and other fixed
costs. Including the above mentioned reductions, the current estimate for the
total capacity reduction in Finland is 450-500 persons and includes both
operative and non-operative personnel. The improved operational model is
expected to be implemented by the end of the second quarter of 2011.
The process to consolidate detail engineering services to engineering centres in
cost competitive locations was started in 2009. The ramp-up of engineering
centres (Finland, Poland, Brazil, China) serving especially larger projects for
industrial clients has resulted in the consolidation of the Finnish engineering
centre operations in Kouvola. At the same time, the process to consolidate core
competence areas that build on Pöyry's strong process know-how and project
management capabilities has continued. The organisation in Finland plays a major
role in offering clients effective integrated services, combining technology and
process know-how with cost-efficient project implementation serving the
industrial sector globally.
Office network in Finland has now been clustered under a regional model with
wider scope of services and improved cost efficiency benefiting Pöyry's clients
in the regions. Regional centres in Vantaa, Tampere, Turku, Oulu, Kuopio and
Lappeenranta offer Pöyry's services across sectors. The regional centres will be
supported by local offices concentrating on engagements requiring local
presence. Finland will continue to constitute one of Pöyry's core markets with
strong service capabilities employing around 2000 persons. This change in
operational model does not impact Pöyry's external reporting structure.
Heikki Malinen, President and CEO:
"Cutting-edge engineering and project management is Pöyry's strength and future.
Our employees are undoubtedly some of the best in the industry. By working as
one Pöyry we can offer our customers the same broad scope of services
everywhere. We have an excellent track record and current key projects
demonstrate our continued strong presence as the market leader in Finland."
The group-wide operational excellence programme will continue during 2011-2012.
The programme includes efficiency improvement measures and investing in core
processes and competence development.
See also stock exchange releases of 14 and 28 October 2010 regarding the
Operational Excellence Programme.
PÖYRY PLC
Additional information by:
Heikki Malinen, President and CEO, Pöyry PLC, Finland
Camilla Grönholm, Executive Vice President, Human Resources, Pöyry PLC, Finland
Contacts: Heli Uusnäkki, tel. +358 10 33 21158
Press outside the capital area:
Tapio Aalto, President, Pöyry Finland Oy
Contacts: Heli Uusnäkki, tel. +358 10 33 21158
Investors and analysts:
Sanna Päiväniemi, Director, Investor Relations, Pöyry PLC, Finland
tel. +358 10 33 23002
Pöyry is a global consulting and engineering company dedicated to balanced
sustainability and responsible business. With quality and integrity at our core,
we deliver best-in-class management consulting, total solutions, and design and
supervision. Our in-depth expertise extends to the fields of energy, industry,
urban & mobility and water & environment. Pöyry has 7000 experts and the local
office network in about 50 countries. Pöyry's net sales in 2009 were EUR 674
million and the company's shares are quoted on NASDAQ OMX Helsinki. (Pöyry PLC:
POY1V).
DISTRIBUTION:
NASDAQ OMX Helsinki
Major media
www.poyry.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Pöyry Oyj via Thomson Reuters ONE
[HUG#1470106]
Unternehmensinformation / Kurzprofil:
Datum: 08.12.2010 - 08:01 Uhr
Sprache: Deutsch
News-ID 49501
Anzahl Zeichen: 5949
contact information:
Town:
Vantaa
Kategorie:
Business News
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