Finland-based Metso Outotec has announced it intends to reorganize its Metals business, saying the move is part of an earlier announced turnaround program.
Metso Outotec states: “The target is to create an operational model for Metals capital and services that suits the scale and nature of the business today and meets the specific demands of the Metals refining segment customer base.”
“The restructuring and turnaround program aims to improve Metals’ competitiveness and financial performance as well as ensure more granular management of the various businesses and resources,” says Jari Ålgars, president of the Metals business area at Metso Outotec. “The restructuring will enable us to size and scope our offering and resources in a more efficient way,” he adds.
The company says approximately 1,100 people are employed in its Metals capital and service business globally and “are within the scope of the restructuring program.”
According to plans made so far, “restructuring is estimated to lead to a maximum 160 redundancies [layoffs] in the Metals operations globally, corresponding to targeted savings of 15 million euros ($18.2 million),” the company says.
Those figures include personnel working in Finland, where the number of jobs eliminated is being estimated at “60 employees at most,” the firm says. The impact of the restructuring on different employee groups will be determined during the first quarter of 2021, and “actions will be taken in compliance with local employment legislation in the countries in question,” states Metso Outotec.
Part of Metso Outotec’s current Metals business area consists of smelting equipment design and fabrication acquired when Metso and Outotec merged earlier in 2020.
The other portion consists of recycling industry shredding, shearing and baling equipment acquired in the past 20 years, when Metso engaged in multiple transactions to acquire brands that include Lindemann, Svedala Industri AB, Texas Shredder, M&J Industries, Mueller Engineering Inc. and Bulk Equipment Systems and Technologies Inc. (BEST).
The company has not indicated the reorganization will affect the aggregates recycling, crushing and screening equipment operations that are part of the Metso Minerals business area.