EMCC European Monitoring Centre on Change

Outokumpu

Company/Organisation:
Outokumpu

Geographic Location

Country: World
Location of affected unit(s): Finland, Sweden, other unspecified countries

Company

Sector: Manufacturing
Manufacture of basic metals and fabricated metal products, except machinery and equipment
24.52 - Casting of steel
Number Employed: 8000

Employment Effects

Announcement Date: 20-10-2011
Planned Job Reductions min: 1300
Planned Job Reductions max: 1300
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-01-2012
Foreseen End Date: 31-12-2012

Additional Information

Finnish producer of stainless steel Outokumpu will cut up to 1300 jobs globally until the end of 2012. The jobs will be foremost lost in Finland (up to 300 jobs) and Sweden (up to 600 jobs at plants in TorshällaAvesta and Långhyttan amongst others). Other jobs will be cut throughout Europe by reducing the number of local stocking operations. The redundancies are part of an internal restructuring plan which aims to reduce costs by EUR 100 million by the end of 2012.

Outokumpu has plants in Finland (Tornio, Kemi), Sweden (Avesta, Nyby, Kloster and Degerfors), the UK (Sheffield) and the US (New Castle). The company maintains additional stocking operations in more than 20 countries.

Outokumpu employs close to 8 000 people. The company is operating in a tough business environment, facing worldwide overcapacity of production and increasing European imports of stainless steel. This is reported to push Outokumpu towards a number of cost cutting decisions, notably reducing the number of production shifts at its Swedish plants in Avesta, Nyby, and Kloster. Outokumpu also restructures its organisation and will rely more on outsourcing support functions.