Neste Shipping to improve its operational efficiency and start statutory employer-employee negotiations
Neste Oil Corporation
Press Release
28 January 2013 at 10.45 a.m. (EET)
Neste Shipping to improve its operational efficiency and start statutory employer-employee negotiations
Neste Oil's shipping subsidiary, Neste Shipping Oy, is to start an efficiency improvement program aimed at improving its profitability and securing the continuity of its operations. Improved profitability will be essential to enabling Neste Shipping to make the major statutory environmental investments that will be required between 2014 and 2017, deal with rising costs, and handle other projects and investments needed to secure the continuity of the company's operations into the future.
As part of the efficiency improvement program, statutory employer-employee negotiations will be started that could result in a maximum of 130 people being made redundant. Negotiations will cover all of Neste Shipping's land- and sea-based personnel in Finland, around 450 people in total. The goal of the efficiency improvement program is to make the business profitable by increasing revenue and reducing costs by a total of around EUR 15 million annually.
"Neste Shipping's financial position and profitability have been clearly below the levels we have expected for some time," says Arvo Ruotsalainen, Neste Shipping's Managing Director. "Freight rates have been low and costs have risen. We do not see any fundamental change for the better taking place over the next few years and it is impossible to achieve a sufficient level of improvement in our performance using the current operating model. That is why we are now looking for new solutions through statutory employer-employee negotiations to secure the future continuity of the business."
Neste Oil Corporation
Osmo Kammonen
Senior Vice President, Communications, Marketing and Public Affairs
Further information:
Arvo Ruotsalainen, Managing Director, Neste Shipping, tel. +358 (0)50 458 8205
Neste Shipping in brief
Neste Shipping Oy is 100%-owned by Neste Oil Corporation and has a fleet of 24 vessels. Neste Shipping carries a total of close to 30 million t/a of crude oil, petroleum products, and chemicals, primarily in the Baltic, the North Sea, and the North Atlantic. Around half of Neste Shipping's capacity is employed carrying Neste Oil cargoes, with the remainder used to carry cargoes for other international customers.
Neste Oil in brief
Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company produces a comprehensive range of major petroleum products and is the world's leading supplier of renewable diesel. Neste Oil had net sales of EUR 15.4 billion in 2011 and employs around 5,000 people, and is listed on NASDAQ OMX Helsinki.
Neste Oil is included in the Dow Jones Sustainability World Index and the Ethibel Pioneer Investment Register, and has featured in The Global 100 list of the world's most sustainable corporations for many years. Forest Footprint Disclosure (FFD) has ranked Neste Oil as one of the best performers in the oil & gas sector. Further information: www.nesteoil.com