Neste Announces Completion of Organizational Merger and Restructuring

Neste Announces Completion of Organizational Merger and Restructuring

(IN BRIEF) Neste has finalized its organizational restructuring, merging its three renewable business units into one and restructuring functions to align with business-driven operations. The move aims to enhance cost-efficiency, competitiveness, and execution of growth strategy. Approximately 400 job roles globally are expected to be reduced, with significant impacts in Finland. The restructuring is projected to yield annual cost savings of around EUR 50 million and is part of Neste’s broader Neste Excellence program targeting value creation.

(PRESS RELEASE) ESPOO, 13-Mar-2024 — /EuropaWire/ — Neste (HEL: NESTE), the world’s leading producer of sustainable aviation fuel and renewable diesel, and renewable feedstock solutions for various polymers and chemicals industry uses, has successfully concluded its organizational restructuring, as announced on 1 November 2023. The company has consolidated its three renewable business units into a single Renewable Products business unit and streamlined its functions to better align with business-driven operations.

By simplifying its organizational structure and operational model, Neste aims to bolster the execution of its growth strategy while enhancing cost-efficiency and long-term competitiveness. The planned changes are anticipated to lead to the reduction of approximately 400 job roles globally, with about 320 roles confirmed to be affected in Finland following comprehensive change consultations. Additionally, an estimated 70 job roles will be impacted globally. Neste is committed to providing support to affected employees during this transition period.

The restructuring initiative is projected to yield total annual cost savings of approximately EUR 50 million. During its Capital Markets Day in June 2023, Neste outlined its goal of achieving over MEUR 350 in value creation through its Neste Excellence program by the end of 2026, using 2022 as the new base year. These organizational changes, alongside a more streamlined development portfolio, represent tangible progress within the program.

The completion of this organizational change process underscores Neste’s commitment to driving operational efficiency, fostering innovation, and delivering sustainable solutions to meet evolving market demands.

Susanna Sieppi
Vice President, Communications and Brand (act.)

Further information: Please contact Neste’s media service, tel. +358 800 94025 / media@neste.com (weekdays from 8.30 a.m. to 4.00 p.m. EET). Please subscribe to Neste’s releases at https://www.neste.com/for-media/releases-and-news/subscribe.

Neste in brief

Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. The company refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials.

As the world’s leading producer of sustainable aviation fuel and renewable diesel and a forerunner in developing renewable and circular feedstock solutions for polymers and chemicals, Neste helps its customers to reduce their greenhouse gas emissions by at least 20 million tons annually by 2030.

The company’s ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe by 2030. Neste is committed to reaching carbon-neutral production by 2035, and will reduce the carbon emission intensity of sold products by 50% by 2040. Neste has also set high standards for biodiversity, human rights and the supply chain. The company has consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2023, Neste’s revenue stood at EUR 22.9 billion. Read more: neste.com

SOURCE: Neste Corporation