Outokumpu has outlined a new vision, modified its financial objectives and decided on a new organisational structure. At the same time, a decision has been made to continue developing the technology business as a part of the Outokumpu Group. The role of the technology business will, however, be more independent and from the Group’s perspective the business will be managed through the board work of Outokumpu Technology Oy.
The Board of Directors has approved modified financial objectives reflecting its vision to be number one in stainless for growth, profitability and financial strength. Financial objectives are: to continue to grow faster than the market; a return on capital to be more than 13% and always the best among peers; gearing to be below 75%.
Two new positions, Executive Vice President Commercial Operations and Executive Vice President Production Operations, will be established in the Group Executive Committee as of April 2005.
The new organisational structure, which will be effective as of 1 April 2005, also supports the new vision. The Group Executive Committee focuses on running the stainless business directly, and the roles of functional leaders for commercial and production operations will be essential in driving the operational excellence efforts together with the business units. The stainless business will be organised into two divisions according to product types as well as into a separate Tubular Products business unit (including the US pipe operations). The current North America division will be dissolved.
The new General Stainless division will comprise three business units: Tornio Works and Ferrochrome, Coil Products Sheffield, and Sheffield Primary Products. The new Specialty Stainless division will consist of four business units: Avesta Works, Thin Strip (Nyby/Kloster and Sheffield Special Strip), Hot Rolled Plate (including the US plate operations), and Long
Products (including the US long products operations). Corporate Management and support functions will be realigned to support the new management system and business organisation.
In the new structure, Outokumpu Technology will from the Group perspective be managed at arm’s length as a stand-alone business through its board work. Until the divestment of the fabricated copper products business is completed, Outokumpu Copper will be managed separately. Both the technology and copper businesses will report to the Deputy CEO.
Outokumpu has also announced the formation of a new group executive committee, effective
1 April 2005.
