Outokumpu has developed a plan to improve profitability

Full implementation of the plan assumes that the company will be the “best stainless steel producer” by 2020 in terms of efficiency and customer focus. It will take several years to achieve these goals, so the company considers it necessary to introduce urgent measures to reduce costs and increase competitive positions.

The first stage is aimed at reducing net debt to 1.2 billion by the end of 2017. It should enable the company to improve the efficiency of its production processes. By the end of 2017, the company also wants to reduce the cost of general and administrative expenses by 100 million euros, starting from 400 million euros of these costs at the end of 2015.

A good manufacturing organization should expand the portfolio and operations in the Americas, which requires fundamental changes in collaboration with customers and business partners, as well as improving the quality of the team. This raises the need to introduce urgent measures to force a change in our costs and competitive position. Outokumpu has three main lines of business in Europe, North and South America.

This organization of work comes into force on June 1 this year. The global cost cut is expected to result in a reduction of 600 people, of which 140 in Finland and 90 in Sweden. About 100 people will be laid off at the Tornio plant. In general, the employment in the company should decrease from 11 thousand people at the end of 2015 to 9 300 people in the coming years.