Outokumpu conclude IG Metall negotiations

Outokumpu announced today that the negotiations regarding the industrial plan have been successfully concluded with the employee representatives and unions in Germany.

The industrial plan for Business Area EMEA Stainless was originally announced in October 2013, with a target of EUR 100 million annual savings, contributing to the overall annual synergy and cost savings of EUR 450 million in 2017.

“This is an important milestone in our journey towards sustainable profitability,” said Outokumpu CEO Mika Seitovirta. “The agreement enables us to carry out the necessary restructuring and efficiency measures as planned. It also strengthens our commitment to Germany, the largest stainless steel market in Europe and home to many of our employees.”

Key elements of the agreement:

– Bochum meltshop will be closed in 2015, following a production transfer process that ensures continuation of high quality deliveries to customers after the Bochum closure
– Outokumpu invests EUR 108 million to the Krefeld cold rolling center in Germany between 2014 and 2016 through the ferritic production optimization (NIFO-project)
– Benrath cold rolling mill is expected to be closed in 2016 after the production transfer to Krefeld has been completed

This now agreed industrial concept results into a reduction of 1,000 jobs, thereby bringing the total reduction of jobs to 3,500 jobs globally by the end of 2017.

“The measures we are taking across our entire company are painful but necessary to return Outokumpu back to sustainable profitability, which is also the best way to safeguard jobs and future growth,” Seitovirta concluded.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Luca Rossi

• 

  Tip TV

• 

  Neto Trade Analysis Department

• 

  Guardian Stockbrokers