FIVE BUSINESS DIVISIONS FOR FORTUM

Fortum, one of Europe's leading integrated energy groups, based in Finland,  will divide the present operations of the IVO Group and the Neste Group into five business divisions. These are Oil & Gas, Power & Heat, Operations & Maintenance, Engineering and Chemicals. This will clarify the structure of Fortum. The new corporate structure is due to come into force at the turn of 1998-99.

 

”We will judiciously develop Fortum forward,” Heikki Marttinen, President and CEO, describes the new corporate structure. ”The aim is to further deepen and tighten the co-operation between the IVO Group and the Neste Group with the aim of intensifying Fortum’s operations and constantly improving customer services and profitability.”

 

Fortum's core business is energy: oil and gas, power and heat, operation and maintenance, and engineering. In addition, Fortum has significant chemical business operations and manufacturing of equipment and systems used in energy measurement, which are intended to be developed in a way which will increase the shareholder value.

 

The Oil & Gas business division as well as the Chemical business division will report to Neste’s President and CEO Jukka Viinanen, a member of Fortum's Corporate Executive Committee. Power & Heat, Operation & Maintenance, and Engineering will report to IVO’s CEO Kalervo Nurmimäki, a member of Fortum's Corporate Executive Committee.

 

The new organisation will utilise the synergy between the energy-related business divisions. Fortum’s Operation & Maintenance business division consists of IVO’s operation and maintenance business. The intensifying of the cooperation of the  maintenance of Neste’s refineries with  Fortum’s Operation & Maintenance division will be investigated. Fortum’s Engineering business division will concentrate on energy-related planning, construction and consultation, and it will consist of the engineering operations of IVO and Neste. Neste Lämpö and NAPS (Neste Advanced Power Systems) will become part of Fortum’s Power & Heat business division.

 

Corporate staff division will be co-ordinated in a centralised way from the Fortum Group.

 

Fortum’s Supervisory Board has today, 18th August 1998, discussed new divisions  proposed by the Board of Directors. The implementation will be continued by the Board of Directors and Corporate Executive Committee in cooperation with employees.

 

Further information:

Heikki Marttinen, President and CEO        + 358 9 6185 8210

 

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