Kemira go on cost-cutting rampage after disappointing 2nd quarter results

After the recent disappointing financial results, Kemira, the leading supplier of paper chemicals, has launched a global savings program to improve its profitability (see press release).

Kemira plans to save more than EUR 50 million per annum, of which more than EUR 20 million is planned to come from Kemira's Finnish operations. It will start 'co-determination negotiations' at 5 of the group's Finnish sites - Oulu, Vaasa, Äetsä, Espoo and Helsinki. The restructuring and savings program may involve a net reduction of up to 300 jobs in Finland but none of the Finnish sites will be closed.

Kemira has approximately 10,700 employees worldwide, almost 3,000 of whom are based in 13 sites in Finland. The company has spent its way to being the largest supplier of paper chemicals by making a series of small to medium-sized acquisitions which have proven difficult to integrate. As it becomes clear where the cost-savings will impact on Kemira's paper chemicals operations, the information will be published on this weblog.

The reaction to the announcement has been:

• An employee walkout at the Vaasa facility (see press article)
• ........ other details will be added as they arise