Rautaruukki to streamline engineering operations in Hungary
Rautaruukki’s engineering division, Ruukki Engineering is to streamline operations at its Hungarian unit Ruukki Tisza Zrt to improve profitability.
It said that “Better profitability will be sought by cutting overheads and by improving organizational function. Efficiency actions are part of the division’s productivity and profitability improvement program, which aims at improving the division’s operating profit by €20 million in 2008. Overheads will be cut to lower the unit’s cost structure. It has been agreed to cut the number of white collar jobs by a total of 190 during the course of this year and next. Reducing relates to the administrative staff.”
The release added that “A new enterprise resource planning system will be introduced at the Hungarian unit as part of efficiency improvement actions. Deployment of Ruukki’s common systems and ways of working at the unit will reduce overlapping work and simplify administrative structures.”
Tommi Matomäki president of Ruukki Engineering said that the Hungarian unit has an important role in our growth strategy. A new organizational structure and the introduction of new systems call for different skills than earlier. This means staff retraining and adjusting staff numbers to improve profitability. We’re offering employees an opportunity to retrain for new jobs on the production side at Ruukki Tisza Zrt.
Rautaruukki acquired a majority stake in Ruukki Tisza Zrt in May 2007. The company has production sites in Jászberény and Hatvan in Hungary and is part of Ruukki Engineering division. Ruukki Tisza Zrt has 992 employees, including hired in workers. (SteelGuru, India)
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