25.02.2016, 23:32
Fortum to Reorganise Its Business Structure as of 1 April 2016
OREANDA-NEWS. Fortum reorganises its corporate structure as of 1 April 2016. The target of the new organisation is to enable the implementation of the company's new vision and strategy, which were announced on 3 February 2016.
The new organisation consists of three business divisions: Generation, City Solutions and Russia. In addition, two development units focusing on growing new businesses are established: M&A and Solar & Wind Development as well as Technology and New Ventures.
Changes to Fortum's segment reporting are minor at this point and the company will keep four reporting segments. The segments as of the second quarter 2016 are: Generation, City Solutions (mainly the former Heat, Electricity Sales and Solutions) and Russia. M&A and Solar & Wind Development as well as Technology and New Ventures will be reported under Other. Some businesses will be repositioned due to the reorganisation, but because of the minor financial impact at this point, the comparable segment information for 2015 will not be restated.
The new organisation will have four staff functions: Finance; Legal; Strategy, People and Performance as well as Corporate Affairs and Communications. Contrary to the current organisation, there will not be a Chief Operating Officer role in the new structure, and the business divisions and development units will report directly to the President and CEO. The current Chief Operating Officer will be appointed Deputy CEO to support the President and CEO in implementing the new vision and strategy.
"With the new organisation we put focus on our new strategic priorities. We enable productivity improvement of existing operations, growth in city solutions, solar and wind as well as development of new energy ventures. We also aim to increase speed and agility, reduce the number of organisational layers wherever possible and offer opportunities to talented women and men through active rotation. We will also emphasise key development efforts critical to our future," says Pekka Lundmark, President and CEO of Fortum Corporation.
The new organisation consists of three business divisions: Generation, City Solutions and Russia. In addition, two development units focusing on growing new businesses are established: M&A and Solar & Wind Development as well as Technology and New Ventures.
Changes to Fortum's segment reporting are minor at this point and the company will keep four reporting segments. The segments as of the second quarter 2016 are: Generation, City Solutions (mainly the former Heat, Electricity Sales and Solutions) and Russia. M&A and Solar & Wind Development as well as Technology and New Ventures will be reported under Other. Some businesses will be repositioned due to the reorganisation, but because of the minor financial impact at this point, the comparable segment information for 2015 will not be restated.
The new organisation will have four staff functions: Finance; Legal; Strategy, People and Performance as well as Corporate Affairs and Communications. Contrary to the current organisation, there will not be a Chief Operating Officer role in the new structure, and the business divisions and development units will report directly to the President and CEO. The current Chief Operating Officer will be appointed Deputy CEO to support the President and CEO in implementing the new vision and strategy.
"With the new organisation we put focus on our new strategic priorities. We enable productivity improvement of existing operations, growth in city solutions, solar and wind as well as development of new energy ventures. We also aim to increase speed and agility, reduce the number of organisational layers wherever possible and offer opportunities to talented women and men through active rotation. We will also emphasise key development efforts critical to our future," says Pekka Lundmark, President and CEO of Fortum Corporation.
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