05 February 2009

Neste Oil to reorganize its operations around three business areas

Published in Releases and news
Neste Oil is to reorganize its operations around three business areas and seven common functions, and will introduce a new organization reflecting this on 1 April 2009.
 
"The change is intended to give us a more cost-efficient and customer-driven operating model, and one that will be better capable of implementing our strategy," says President & CEO Matti Lievonen.
 
"The new model is a matrix organization that will enable us to leverage the best practices and know-how of our business areas and functions for the benefit of the entire company. It will also enable us to ensure that new international units, such as the NExBTL renewable diesel plants under construction in Singapore and Rotterdam, can be integrated into Neste Oil's operations and reporting effectively."
 
Business areas and reporting segments
 
The new business areas will act as profit centers and will be responsible for their customers, products, and business development. The new business areas are as follows: Oil Products, Renewable Fuels, and Oil Retail. Activities outside these business areas will be grouped under Others.
 
Neste Oil's financial reporting will be based on these business areas from 28 April 2009 onwards when the Q1/2009 figures are announced. Comparative figures for 2008 will be published before that in April.
 
The Specialty Products Division will be consolidated into the Oil Products business area. Shipping operations will be reported in connection with the business areas that use them, and the Shipping business incorporated into Production & Logistics function.
 
Common functions
 
Neste Oil's common functions will be responsible for the production operations and processes required by business areas, and for ensuring their efficiency. They will also be responsible for the cost efficiency, transparency, and harmonization of procedures across the company, and for overseeing the use and sufficiency of Neste Oil's resources.
 
The new common functions will be: Production & Logistics, Finance, Human Resources, HSE, Technology & Strategy, Communications, and Legal Affairs.
 
Neste Executive Board
 
The Neste Executive Board, under the President & CEO, will be responsible for the implementation of the company's strategy and for meeting operational targets.
 
The Neste Executive Board will comprise the following members:
 
Matti Lievonen, President & CEO
Matti Lehmus, Executive Vice President, Oil Products
Jarmo Honkamaa, Executive Vice President, Renewable Fuels, Deputy CEO
Sakari Toivola, Executive Vice President, Oil Retail
Ilkka Poranen, Senior Vice President, Production & Logistics
Ilkka Salonen, CFO
Hannele Jakosuo-Jansson, Senior Vice President, Human Resources
Simo Honkanen, Senior Vice President, HSE
Osmo Kammonen, Senior Vice President, Communications
Lars Peter Lindfors, Senior Vice President, Technology & Strategy
Matti Hautakangas*, General Counsel.
*Secretary to the Neste Executive Board, not a member
 
Neste Executive Management Board
 
The Neste Executive Management Board will comprise the President & CEO, business area executive vice presidents, the CFO, and the Senior Vice President, Production & Logistics, and will be responsible for leading and setting operational business targets and monitoring progress on achieving them.
 
Neste Oil Corporation
 
Osmo Kammonen
Senior Vice President, Communications
 
 
Further information:
President & CEO Matti Lievonen, tel. +358 (0)10 45811
 
Encls:
Organizational structure as of 1 April 2009
Management presentation