Cargotec to change operating model to accelerate strategy implementation
CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 27 OCTOBER 2011 AT 8.25 A.M. (EEST)
Cargotec accelerates the implementation of its strategic initiatives by announcing planned changes in operating model and Executive Board's responsibilities. The company also plans to streamline the organisation in centralised Support functions and central Supply.
Based on the plan, business area Industrial & Terminal will be divided into two new business areas: Terminals and Load Handling. Cargotec's Supply organisation, which develops factory operations and related sourcing activities, would be divided into the new business areas. Business area Terminals will be led by Unto Ahtola as Executive Vice President, Terminals. Unto Ahtola is currently responsible for business area Industrial & Terminal. Axel Leijonhufvud has been appointed to lead the new business area Load Handling as Executive Vice President, Load Handling. He is currently responsible for Supply. These changes would be effective from 1 January 2012.
Except for the changes in responsibilities, the Executive Board will remain unchanged. Business areas Marine and Services continue unchanged. Cargotec's external financial reporting segments will be Marine, Terminals and Load Handling as of 1 January 2012.
Cargotec's strategy drives towards customer solutions. Cargotec is determined to grow its business by customer focus with a vision to be the world's leading provider of cargo handling solutions. Recent strategic initiatives such as Navis acquisition and a planned joint venture in China strengthen Cargotec's leading position in container terminals business. The renewed focus on Load Handling aims to strengthen Cargotec's market position also in those core markets.
In order to streamline the organisation, Cargotec is planning to adjust both operations and workforce in centralised Support functions and central Supply. In addition, part of Cargotec's accounting operations, Cargotec Shared Service Centre, located in Turku, Finland and Ljungby, Sweden, are planned to be outsourced to an external partner. This change would improve the ability to respond to the demands on global accounting services.
It is estimated that these planned changes would have an impact on approximately 115 employees in centralised Support functions, central Supply and accounting. Therefore, Cargotec starts co-operation negotiations on 27 October in Sweden and Finland.
Further information for the press:
Mikael Mäkinen, President and CEO, tel. +358 20 777 4100
Anne Westersund, Vice President Communications and Marketing, tel: + 358 20 777 4460
Further information for investors:
Eeva Sipilä, CFO, tel. +358 20 777 4104
Cargotec improves the efficiency of cargo flows on land and at sea - wherever cargo is on the move. Cargotec's daughter brands, Hiab, Kalmar and MacGregor are recognised leaders in cargo and load handling solutions around the world. Cargotec's global network is positioned close to customers and offers extensive services that ensure the continuous, reliable and sustainable performance of equipment. Cargotec's sales totalled EUR 2.6 billion in 2010 and it employs approximately 11,000 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com