Published on October 1st, 2013 | by Anneli Hidalgo0
Outokumpu cuts 1000 jobs
Finnish steel-maker Outokumpu cuts 1000 more jobs as the company introduces a new industrian plan.
Outokumpu announced on October 1 plans for further structural changes in its European operations “aimed at improving its financial performance and efficiency, and ultimately returning the company to profitability.” With a tough stainless steel market, Outokumpu has continued to be heavily loss making in 2013, with a net debt of 3.0 billion euros at the end of June 2013. Outokumpu is now introducing a new industrial plan and efficiency measures for its operations in Europe. Specifically, the planned changes include acceleration of the Bochum melt shop closure in Germany to achieve more efficient production structure and higher capacity utilization rates. It also includes reduction of annealing and pickling capacity by 200,000 tonnes in Finland and cold rolling capacity by 300,000–350,000 tonnes in Germany to increase capacity utilization and lower costs and optimization of company’s service center network by closing service centers in Barcelona, Spain and in Langenhagen, Germany.
The planned structural changes announced today are expected to result in up-to 1,000 additional job reductions in Europe, bringing the total planned global reduction to 3,500 jobs. The industrial plan is expected to result in additional savings of more than EUR 100 million and the overall savings programs are expected to result in annual savings of EUR 300 million in 2014 and EUR 450 million in 2017.
According to the plan, majority of the current production in Bochum will be transferred to Tornio by the end of 2014. In addition, company plans to take out of use one annealing and pickling line (annual capacity 200,000 tons) in Tornio to meet the current market demand. The plan is expected to impact up-to 100 people in Tornio, Finland and in Terneuzen, the Netherlands combined. According to the planned structure, Tornio continues to have key role in Outokumpu’s melting, austenitic cold rolling and R&D strategy. Today’s announcement will not impact the company’s ferrochrome operations in Tornio or the chromite mine operations in Kemi.