SSAB announces that its Finnish business unit is in cost-cutting negotiations, potentially to reduce its workforce, in Raahe because of continued weak demand.
The objective is to structurally reduce fixed costs by at least €10 million ($11m) on an annual basis, the steelmaker tells Kallanish. The negotiations will discuss alternatives to increase flexibility in operations and adjust to weakened demand, while taking account of future needs.
”The aim is to work together to find solutions to increase flexibility, mobility and multi-skills so that our operations respond more flexibly than at present to future needs,” says Jarkko Matkala, SSAB Raahe’s site manager.
The negotiations concern the Raahe works’ organisation, and would affect around 2,400 employees. Unless agreement is reached on the primary operations models, the negotiations could result in workforce reductions, the company notes.
The negotiations will last an estimated six weeks unless otherwise agreed. SSAB employs a total of around 4,700 people in Finland.
Christian Koehl Germany