Oslo – Norwegian chemicals supplier Elkem SA is implementing a NOK200 million (€17.5 million) global restructuring scheme to optimise efficiency and cost position.
The two-year global productivity improvement programme will streamline the organisation and is expected to save the company NOK350 million annually, Elkem said in a 3 March statement.
While the savings will mainly be achieved through the planned reductions of personnel, the company said it was too early to estimate how many full-time jobs will be affected.
Elkem expects positive earnings contributions from the restructuring to be realised in early 2021, with “full potential” to be achieved from the end of 2021.
The Oslo-based supplier of silicones said the measures are taken as it failed to meet profitability targets and amid uncertainty in the market.
“Corrective actions are expected and needed,” said Michael Koenig, Elkem’s CEO, “our aim is to improve Elkem’s profitability to fund future growth and specialisation.”
Elkem said it was in close dialogue with employee representatives to carry out the programme in compliance with local labour laws.
Elkem will prioritise reducing external contractors and using normal attrition.