Vantaa, Finland, 14 October 2010 -- Over the past years, Pöyry's market environment has changed, particularly in Finland. Many of Pöyry's core industrial clients have shut down capacity in Finland and are shifting operations to emerging markets. Investment activity, especially in the industrial and municipal sectors, has declined. This calls for structural changes, especially in Finland.
The Pöyry Group has completed its strategic review addressing these market changes. Key strategic priorities for 2010-2013 have been defined to reach financial targets disclosed in connection with the vision launch, as follows:
- Key segments and geographies
Focus on selected businesses and geographic areas within the energy, industry, urban and mobility and water and environment segments to achieve a leadership position. The geographic focus will target markets where the Pöyry Group is able to develop an enduring competitive position and where the mid-to-long-term demand outlook for the company's services is expected to remain positive. These markets include Central and Eastern Europe, Latin America, and Russia, in particular.
- Synergetic services
Develop value-added services and capabilities to improve profitability. These include new offerings in management consulting, larger project scopes involving engineering, procurement and construction management, and establishment of cost competitive engineering centers to better serve chosen segments and geographies.
- Business portfolio development
Active management of the portfolio aims at strengthening Pöyry's competitive position in the priority segments and geographies.
- Growth enablers
Key enablers for profitable growth include thought leadership, large projects capabilities, marketing and sales, and ways of working. Internal development programs are launched to improve the company's execution capabilities in these four areas.
To support strategy implementation, Pöyry has launched an operational excellence program. The program aims at improving the efficiency and quality of operations to serve Pöyry's clientele in a cost-efficient way. It includes streamlining operations and office network, improving core processes, and investing in competence development. The program will be implemented during 2010-2012.
The program will be started in Finland where the need for structural changes and streamlining of the organization is most imminent, and significant cost saving can be achieved. The aim is to achieve a more effective and cost-efficient organization and a streamlined regional office network in Finland. As part of the program, engineering services continue to be consolidated into engineering centers in cost competitive locations.
In conjunction with the program, Pöyry has begun statutory employee negotiations in all its Finnish operations. Further information on the targeted cost-savings, personnel, and other implications and related nonrecurring items will be communicated as the program proceeds and the possible impacts on the organization and capacity are defined.
Pöyry is a global consulting and engineering company dedicated to balanced sustainability. We offer our clients integrated management consulting, total solutions for complex projects and efficient, best-in-class design and supervision. The company's in-depth expertise extends to the fields of energy, industry, urban and mobility, and water and environment. Pöyry has 7000 experts operating in about 50 countries, locally and globally. Pöyry's net sales in 2009 were EUR 674 million and the company's shares are quoted on NASDAQ OMX Helsinki (Pöyry PLC: POY1V).