Perstorp Announces Organizational Changes, Cost-Cutting Measures
PERSTORP, Sweden - Chemicals company Perstorp is introducing a new business model, organizational structure and management team, in addition to a cost competitiveness program that involves eliminating 111 positions within the company. The changes are aimed at helping the company become more competitive in the face of deteriorating financial performance over the past several years.
Perstorp has defined a new business model that separates company products into the two business areas of Intermediates & Derivatives and Specialties & Solutions. To support the new business model, the company 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 company’s transformation. Gorm Jensen has been appointed EVP BA Intermediates & Derivatives. Joke Driessen has been appointed EVP Operations, and Wolfgang Laures is the new EVP Supply Chain.
A challenging business climate over the last years has resulted in eroding margins and weakening financial performance for the Perstorp Group. In examining its performance, company representatives have identified redundancies of 111 employees, around seven percent of the group’s 1,500 employees. In addition to personnel reductions, other measures such as procurement savings and efficiency improvements in operations and supporting functions will be implemented to improve the overall performance of the company.
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