Leading chemicals company Perstorp introduces a new business model, a new organizational structure, a new management team and a cost competitiveness program. These changes are the result of an extensive self-examination conducted to unlock Perstorp’s full potential and to expand the Group’s competitive advantage. It will also lead to anticipated redundancies of 111 employees throughout the Group.
”After extensive work in close cooperation between management, key employees in the company and our nominated consultants we have reached an important point in the transformation of Perstorp from a good to a great company”, says Jan Secher, Perstorp President and CEO. “We can now be more specific with the changes in terms of structure and organization. It is essential to point out that our financial performance has deteriorated over the last years, to a point where improvements are simply required. As a consequence we are forced to consider not only forward looking measures but also anticipated reduction in personnel. We regret this and are committed to do this in a most respectful manner and in full cooperation with the union representatives.”
New business model and organizational structure to ensure true customer focus
Perstorp has defined a new business model acknowledging the clear difference in customer behavior in an intermediate marketplace driven by supply and demand as opposed to a specialty marketplace, driven by knowledge, application know-how and value-added services. This has resulted in the allocation of Perstorp’s products into the two Business Areas of Intermediates & Derivatives and Specialties & Solutions.
“This new business model will allow us to take an encompassing step towards best in class performance in marketing & sales, with the focus on giving our customers the tailored and differentiated service they are in the need of and prepared to pay for. All driven by an outside in perspective of our business”, Jan Secher comments.
To support the new business model Perstorp has implemented a new functional organization as of January 1, 2014. The company has also appointed three new Executive Vice Presidents recruited from the outside to complement the current team in managing the transformation of Perstorp: Gorm Jensen appointed EVP BA Intermediates & Derivatives, Joke Driessen appointed EVP Operations and Wolfgang Laures appointed EVP Supply Chain.
"I am very pleased with the extensive experience and diversity in all aspects that we have brought together in this team and I truly look forward to work with these highly talented professionals", says Jan Secher.
Cost competitiveness program to stabilize financial results and leverage growth opportunities
A challenging business climate over the last years has resulted in eroding margins and weakening financial performance for the Perstorp Group. The extensive self-examination conducted last fall, in combination with the transition into a functional organization, has led to the need of strengthening the organization within certain areas as well as the need to eliminate duplicate roles.
This has resulted in anticipated redundancies of 111 employees, around 7% of the Group’s 1,500 employees. Of these redundancies, 62 positions are anticipated in Sweden. Negotiations with the respective unions in Sweden and other affected countries have been initiated and the final outcome of the redundancies is subject to union negotiations.
In addition to personnel reductions, other measures like procurement savings, efficiency improvements in operations and supporting functions and commercial excellence will be implemented to improve the overall performance of the company.
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