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Elcoteq Streamlines Finland Operation; Trims Workforce
August 27, 2009 |Estimated reading time: 2 minutes
Elcoteq has decided to combine two current business areas, Home Communications and Personal Communications, under a new Strategic Business Unit (SBU), Consumer Electronics. Communications Networks continues as an independent SBU, now named System Solutions. Two new members have been appointed to the management team; Sándor Hajnal will be responsible for Human Resources and Tomi Saario will be responsible for New Sales and Business Development. Personnel reductions related to the organizational changes are affect approximately 150 employees. Personnel negotiations in Finland began today.
Since the beginning of 2008, Elcoteq had three business areas: Personal Communications, Home Communications and Communications Networks. Each had been reported as separate segments. Personal Communications and Home Communications Business Areas will now be combined, and in the future the company shall only have two Strategic Business Units (SBU): Consumer Electronics and System Solutions. Both SBUs are responsible for managing and developing their existing customer relationships and applicable service offerings, while Group Operations and Sourcing is responsible for supply chain and production. Consumer Electronics represents approximately 75% of the company's net sales and System Solutions represents approximately 25% of net sales.
Consumer Electronics will cover products such as mobile and wireless phones, their parts and accessories, set-top boxes, flat panel TVs and other consumer products. System Solutions will cover wireless and wireline infrastructure systems and modules, enterprise network products and various other industrial segment products.
By combining the Home Communications and Personal Communications segments under the Consumer Electronics SBU, the company can better utilize the synergies between these businesses. Elcoteq aims to achieve further cost reductions by streamlining and simplifying the organization and by removing organizational layers and overlapping roles.
More emphasis has been put on new sales activities which are now under a separate global function--New Sales and Business Development. This area focuses on identifying new business opportunities, acquiring new customers and exploring new product segments for the company. Two new members have been invited to Elcoteq's Management Team from within Elcoteq. Hajnal was responsible for Elcoteq's global HR for the past year and Saario was previously responsible for Elcoteq's Group Strategy and Mergers and Acquisitions.
The new Management Team consists of the following persons: Jouni Hartikainen, President and CEO; Sándor Hajnal, Senior Vice President, Human Resources; Vesa Keränen, Senior Vice President, Consumer Electronics; Markus Kivimäki, Senior Vice President, Legal Affairs; Tommi Pettersson, Senior Vice President, System Solutions; Mikko Puolakka, CFO; Tomi Saario, Senior Vice President, New Sales and Business Development; and Roger Taylor, Senior Vice President, Group Operations and Sourcing.
The change in financial segment reporting will become effective as of October 1, 2009. The appointments will take effect immediately.
About Elcoteq
Elcoteq SE is a leading EMS company in the communications technology field. Elcoteq's global service offering covers the entire lifecycle of products, from product development to after-market services. By further combining mechanics expertise into its service offering, Elcoteq's vision is to be a leading integrated electronics manufacturing services (IEMS) company. Elcoteq provides global end-to-end solutions consisting of product development services, supply chain management, NPI, manufacturing and after market services for the whole lifecycle of its customers' products. These products include Consumer Electronics products such as mobile and wireless phones, their parts and accessories, set-top boxes, flat panel TVs and other consumer products, as well as System Solutions products such as wireless and wireline infrastructure systems and modules, enterprise network products and other industrial segment products.
The Group's consolidated net sales for 2008 totaled 3.4 billion euros and it employs approximately 13,000 persons. Elcoteq SE is listed on the Nasdaq OMX Helsinki Ltd. For more information, visit www.elcoteq.com.