Neste Announces Restructuring Plans to Boost Efficiency and Growth

Neste Announces Restructuring Plans to Boost Efficiency and Growth

(IN BRIEF) Neste, a renewable energy company, is undergoing organizational changes to enhance cost-efficiency and long-term competitiveness. It plans to merge renewable business units, resulting in 400 job cuts and EUR 50 million in annual savings, aiming for over MEUR 350 value creation by 2026. The Executive Committee will see alterations as well, effective November 1, 2023.

(PRESS RELEASE) ESPOO, 1-Nov-2023 — /EuropaWire/ — Neste plans to simplify its organizational structure and its operational model to secure the execution of its growth strategy with improved cost-efficiency and to strengthen its long-term competitiveness. With the planned changes and the simplified structure, Neste aims to strengthen accountabilities and efficient decision making.

Renewable Aviation, Renewable Road Transportation and Renewable Polymers and Chemicals business units will be merged into one Renewable Products business unit covering all renewables businesses. Furthermore, the company plans to align its functions to better support business-driven ways of working.

“We continue to execute our renewables growth strategy, while at the same time focusing on improving our efficiency. The planned simplified organizational structure and operating model will strengthen our long-term competitiveness. I am confident that with these planned changes we continue to create value for our customers and other stakeholders in a changing business environment,” says Neste’s President and CEO Matti Lehmus.

Neste is expecting the planned organizational changes to lead to a reduction of approximately 400 roles globally, predominantly in functions, in the renewables business and in development roles. It is estimated to result in total annual cost savings of approximately EUR 50 million. Furthermore, Neste plans to streamline its development portfolio to realize additional savings. The majority of these savings would be realized during 2024.

Neste communicated on its Capital Markets Day in June 2023 that it is targeting over MEUR 350 value creation with its Neste Excellence program by the end of 2026, compared to the year 2022 acting as the new base year. The planned organizational changes and a more streamlined development portfolio are concrete steps in the program.

As the planning progresses, Neste will engage and work closely with its employees and employee representatives to ensure that they are fully informed and consulted about the proposals. Processes and timelines will vary in different countries and functions.

“As the change process will affect our people it has not been an easy decision to make, but it is necessary. We will offer support to our employees who are affected by this process,” continues Lehmus.

Changes to Neste’s Executive Committee

The organizational changes will affect the structure and composition of the Executive Committee of Neste. As a result the Executive Committee will, as of 1 November 2023, consist of the following members:

Matti Lehmus, President and CEO
Katja Wodjereck, Executive Vice President, Renewable Products business unit
Carl Nyberg, Executive Vice President, Renewables Supply Chain and Sustainability
Markku Korvenranta, Executive Vice President, Oil Products business unit
Martti Ala-Härkönen, CFO, Executive Vice President, Finance, Strategy and IT
Bart Leenders, Executive Vice President, Technology and Projects
Hannele Jakosuo-Jansson, Executive Vice President, Human Resources, Safety and Communications
Christian Ståhlberg, General Counsel, Executive Vice President, Legal

Panu Kopra, Executive Vice President of the Marketing & Services business unit will report to the President and CEO Matti Lehmus while not continuing as a member of the Executive Committee. Two current Executive Committee members, Minna Aila and Lars Peter Lindfors will step down from the Executive Committee and continue at Neste in other roles.

“I would like to thank Minna Aila, Panu Kopra and Lars Peter Lindfors for their valuable contributions in the Executive Committee over the years,” says Matti Lehmus, President and CEO.

The organizational change doesn’t affect the Group’s reporting segments, which are Renewable Products, Oil Products, Marketing & Services and Others.

Neste Corporation

Susanna Sieppi
Vice President, Communications

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 2022, Neste’s revenue stood at EUR 25.7 billion. Read more: neste.com

Media Contact:

Tel.: +358 800 94025
media@neste.com

SOURCE: Neste Corporation