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Nordkalk changes operating model and reduces jobs in order to secure cost competitiveness for future growth

Anne Foley (info a, 2 September 2019

The limestone company Nordkalk is changing its operating model from a corporate-wide, function-based one to a model based on geographical regions. This will lead to changes in responsibilities and, along with the ongoing performance improvement programme, to estimated reduction of up to 200 positions, of which up to 90 in Finland.

Nordkalk has suffered from difficult market situation, declining sales and cost inflation for several years. The performance improvement programme was initiated in the beginning of 2019, aiming at improving Nordkalk’s operative performance and profitability in the long run. Better production efficiency, and optimisation of sourcing and commercial activities, are ways to strengthen cost competitiveness and cash flow for needed current and future investments. To further accelerate performance improvement, Nordkalk has now decided to also change its operating model. 

“We are today announcing a painful but necessary decision for securing Nordkalk’s future and growth. Our committed personnel, many with decades-long careers, will face big changes in the coming months. The company will do its best to support all colleagues in this change period,”comments CEO Paul Gustavsson.   

Two strong geographical regions  

The new organisation model consists of two geographically based regions, one unit for new business and supporting corporate functions. The region Nordkalk Northern Europe will be led by Mikael Furu and Nordkalk Central Europe by Piotr Maciak. The unit New Businesses, led by Kari Vyhtinen, is in charge of growth cases, including R&D and sustainability work, as well as operations in Turkey and Ukraine.  

The regions will have full responsibility for sales and marketing, operations, purchasing and logistics. 

“The new region-based operating model will increase our focus on customers as it brings accountability for actions closer to the local operation. This means clearer responsibilities, less bureaucracy and faster decision-making. I strongly believe that we have significant efficiency and improvement potential in the company, and the new operating model helps us to unlock that potential”, says Paul Gustavsson.  

The Nordkalk Management Team (NKMT) will consist of Paul Gustavsson (CEO), Marcel Gestranius, Mikael Furu, Piotr Maciak, Kari Vyhtinen, Markus Kivimäki, Taru Ämmälä, Kalle Josefsson and Nicklas Bergström (during a transition period until the capabilities in new regions are established). Anne Foley attends the meetings until a new communication responsible joins the team. 

Tarmo Tuominen has decided to step down as Deputy CEO. He will leave the Management Team but continue as Senior Advisor. Marcel Gestranius will be appointed new Deputy CEO. 

The new organisation will be effective as of 1st November 2019, subject to completion of statutory negotiation procedures.

Further information:

Paul Gustavsson, CEO, Nordkalk Corporation, +46 10 476 2544

Nordkalk is the leading company providing lim​estone-based products and solutions in Northern Europe. We deliver essential raw material to numerous industries such as the pulp, paper, metals, mining, construction and chemicals industry. Our solutions contribute to clean air and water as well as the productivity of agricultural land. 

With production in more than 20 locations in the Baltic Sea area, Central Europe, Norway and Turkey, we are always near our customers. The company employs 1000 people, and in 2018 Nordkalk’s turnover amounted to EUR 300 million. N​ordkalk is owned by Ret​tig Group.

Leader in Northern Europe

Nordkalk is the leading limestone company in Northern Europe. We deliver essential raw materials to numerous industries, and our solutions contribute to clean air and water as well as productivity of agricultural land.