STOCK EXCHANGE RELEASE 14 Oct 2010
Pöyry initiates operational excellence programme in Finland
PÖYRY PLC Company Announcement 14 October 2010 at 9.05 a.m.
Over the past years Pöyry's market environment has changed, particularly in Finland. Many of Pöyry's core industrial clients have shut down capacity in Finland and are shifting operations to emerging markets. Investment activity especially in the industrial and municipal sectors has declined. This calls for structural changes especially in Finland.
The Pöyry Group has completed its strategic review addressing these market changes. Key strategic priorities for 2010-2013 have been defined in order to reach financial targets disclosed in connection with the vision launch. The strategic priorities include:
- Key segments and geographies
Focus on selected businesses and geographic areas within the energy, industry, urban & mobility and water & environment segments in order to achieve a leadership position. The geographic focus will target on markets where the Pöyry Group is able to develop an enduring competitive position and where the mid-to-long-term demand outlook for the company's services is expected to remain positive. These markets include Central and Eastern Europe, Latin America and Russia, in particular.
- Synergetic services
Develop value-added services and capabilities to improve profitability. These include new offerings in management consulting, larger project scopes involving engineering, procurement and construction management and establishment of cost competitive engineering centres to better serve chosen segments and geographies.
- Business portfolio development
Active management of the portfolio aims at strengthening Pöyry's competitive position in the priority segments and geographies.
- Growth enablers
Key enablers for profitable growth include thought leadership, large projects capabilities, marketing and sales, and way of working. Internal development programmes are launched to improve the company's execution capabilities in these four areas.
To support strategy implementation, Pöyry launches an operational excellence programme. The programme aims at improving the efficiency and quality of operations to serve Pöyry's clientele in a cost-efficient way. It includes streamlining operations and office network, improving core processes and investing in competence development. The programme will be implemented during 2010-2012.
The programme will be started in Finland where the need for structural changes and streamlining of the organisation is most imminent, and significant cost saving can be achieved. The aim is to achieve a more effective and cost-efficient organisation and a streamlined regional office network in Finland. As part of the programme, engineering services continue to be consolidated into engineering centres in cost competitive locations.
In conjunction with the programme Pöyry starts statutory employee negotiations in all its Finnish operations. Further information on the targeted cost-savings, personnel and other implications and related non-recurring items will be communicated as the programme proceeds and the possible impacts on the organisation and capacity are defined.
Additional information by:
Heikki Malinen, President and CEO, Pöyry PLC, Finland
Camilla Grönholm, Executive Vice President, Human Resources, Pöyry PLC, Finland
Contacts to Jaana Pihlajaniemi, tel. +358 10 33 22399
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. We offer our clients integrated management consulting, total solutions for complex projects and efficient, best-in-class design and supervision. Our in-depth expertise extends to the fields of energy, industry, urban & mobility and water & environment. Pöyry has 7000 experts operating in about 50 countries, locally and globally. Pöyry's net sales in 2009 were EUR 674 million and the company's shares are quoted on NASDAQ OMX Helsinki (Pöyry PLC: POY1V).
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