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Kemira Oyj (KRA1V) Chief Executive Officer Wolfgang Buechele said he’s working on a growth strategy for the Finnish maker of water chemicals that will encompass acquisitions as well as expansion in regional markets such as South America and Asia.
Managers will pull together a plan by November and seek approval from the board in March, Buechele told investors and analysts gathered in London today. The strategy will then be unveiled to the market in April.
Buechele is looking beyond a restructuring program he announced in July that includes 600 jobcuts and a possible 14 site closures to save 60 million euros ($78 million) in costs. The former BASF SE (BAS) executive is installing a new management structure at Kemira, effective October, with four regional chief executives empowered to run their respective areas.
“This is a sharpened strategy, not a completely new one,” Buechele said. Bolt-on purchases will be pursued to gain a presence in markets, though largers acquisitions are off the agenda until the growth strategy is approved by the board, he said.
Kemira’s targets include an earnings before interest and taxes margin of 10 percent by 2014.
“There’s room for consolidation,” Buechele said. “We’re intensively reviewing 14 sites. We’re taking that very seriously.”
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