Ekokem launched on October 9th 2015 an efficiency program to ensure long-term competitiveness. Personnel cost saving programs were launched as part of the efficiency program in accordance with the local legislation covering all operating countries. The efficiency program aims at reorganize and streamline operations and to fully leverage the synergy benefits derived from the Nordic mergers and acquisitions.
The program is expected to generate annual cost savings of approximately EUR 10 million. At least 50 % of the savings and all personnel-related savings are expected to be achieved during 2016, 30 % in 2017, and 20% from 2018 onwards, as part of the continuous improvement of business operations, after the whole program is implemented. As part of the program, personnel-related cost savings objective was EUR 3 million at Group level.
Personnel cost savings programs have been concluded. Whole personnel, app. 700 people, were included in the scope of the programs. As a result, group workforce shall reduce by 58 employees. Employment contracts shall be terminated with of a combined total of 43 employees. In addition, there will be a reduction of 15 employees as a result of expiring temporary contracts and voluntary retirement, among others.
It is estimated that the restructuring measures at hand will bring non-recurring items of ca. 1 million euros that will mainly burden the operating profit for 2015 in the fourth quarters. Annual cost savings of ca. 3 million euros are expected to be achieved and materialize in the operating profit during 2016.