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Outokumpu Changes Segment Reporting for New Organization
12/28/2011 - Outokumpu will launch next week its new organization in which the business is steered as one group by the CEO responsible for the operative management and all business operations.
Outokumpu will launch next week its new organization in which the business is steered as one group by the CEO responsible for the operative management and all business operations. The new structure, announced in October, becomes effective as of January 1, 2012.
Outokumpu's operations consist of one type of business, stainless steel, with highly integrated operations from chrome and ferrochrome to stainless steel products. The new organization is based on three Business Areas: General Stainless, Specialty Stainless and Ferrochrome. Business Areas are strongly linked both operationally and financially, with significant internal material flows between the areas, and thus not totally independent.
With implementation of the new structure with Group-level integration, the company also has decided to report its business based on one single segment, as it is believed this will provide a fairer view of the performance of each Business Area than if each Business Area were to provide its own segment reporting. On a quarterly basis, Outokumpu will report sales at Business Area level and delivery data at product level. In addition, in the annual accounts geographical information will be provided.
Outokumpu’s new Business Areas consist of:
Outokumpu’s new Business Areas consist of:
· General Stainless — Stainless steel operations in Tornio and the finishing plant in Terneuzen
· Specialty Stainless — Special Coil (Avesta Works and Nyby), Special Plate, Kloster and Long Products including the Sheffield meltshop
· Ferrochrome — The Kemi Chrome Mine and ferrochrome production in Tornio.
Outokumpu Oyj is a global leader in stainless steel with the vision to be the undisputed number one. Outokumpu employs some 8000 people in more than 30 countries. The Group's head office is located in Espoo, Finland.
