Neste Oil to seek synergies by merging two business areas
Neste Oil has decided to reorganize its operations now that its renewable fuels business is entering a new phase following two major investment projects. The Oil Products and Renewable Fuels business areas will be merged to create one business area Oil Products and Renewables. Matti Lehmus, currently Executive Vice President, Oil Products, has been appointed Executive Vice President, Oil Products and Renewables. The change will take effect as of 20 December 2010. Neste Oil’s financial reporting will remain unchanged, however. Oil Products and Renewable Fuels will continue to form separate reporting segments.
“The reorganization will bring us greater operational efficiency and clear synergy benefits, which is very much in line with our strategy. By integrating the businesses, we want to ensure cost efficiency and transparency, and ensure that we make the best use of our know-how and resources,” says Matti Lievonen, Neste Oil’s President and CEO. “In addition, the change will enable us to serve our customers more effectively by giving them one clear point of contact at Neste Oil.”
Neste Oil has recently commissioned the world’s largest renewable diesel plant in Singapore and is moving towards completion of a similar-sized plant in Rotterdam, due to come on stream at the end of the first half of 2011. Completion of these major investments means that renewable fuels-related activities will shift into a normal business model.
Parallel to the reorganization, Neste Oil’s Deputy CEO and Executive Vice President, Renewable Fuels, Jarmo Honkamaa, will leave the company.
Neste Oil in brief
Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company is the world’s leading supplier of renewable diesel. Neste Oil’s refineries are located at Porvoo and Naantali in Finland and have a combined crude oil refining capacity of approx. 260,000 bbl/d. The company had net sales of EUR 9.6 billion in 2009, employs around 5,000 people, and is listed on NASDAQ OMX Helsinki.
Neste Oil is included in the Dow Jones Sustainability World Index and is featured in the Ethibel Pioneer Investment Register. It has been awarded ’Best in Class’ recognition for its social accountability by the Norwegian bank, Storebrand, and is on Innovest’s Global 100 list of the world’s most sustainable corporations. Forest Footprint Disclosure (FFD) has ranked Neste Oil as the best performer in the oil & gas sector. Further information: www.nesteoil.com.
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