Main achievements in 2011
Continued focus on larger projects
- In early 2011, Pöyry was awarded a significant assignment by MWV Rigesa Ltda. for the expansion of its paperboard mill in Três Barras in the state of Santa Catarina in Brazil. The assignment consists of contracts for EPC-Balance of Plant and associated EPCM services as well as overall project management services to support the client. The EPC contract has been developed around Pöyry’s unique Open Book concept, which is a risk-sharing partnership arrangement with the client and an example of Pöyry’s ambition to better serve our clients in large complex projects.
- In 2011, Pöyry won three important pulp mill projects in Latin America. These projects include the EPCM contract for the Montes del Plata pulp mill in Uruguay, the engineering and project management services for the Eldorado pulp mill in Brazil, and the BOP (Balance of Plant) EPCM and Owner’s Engineer contracts for the Suzano pulp mill in Brazil.
Focus on emerging markets
- The long-term outlook for investments in emerging markets is robust, and in this respect, they are fundamentally important for Pöyry to secure long-term organic growth. We have a strong position in Latin America, especially in Brazil, and in 2011 Latin America’s share of the Group’s net sales increased to 18 per cent (11 in 2010). In late 2011 a decision was made to increase focus on Asia.
Business portfolio development
- Following the ongoing strategic review, a decision was made to merge the Water & Environment and the Urban & Mobility business groups into the new Urban business group in order to improve competitiveness and better capture synergies across the engineering units serving mainly the public sector. The change became effective as of 1 January 2012.
- During 2011, actions were taken to sharpen focus in the Energy business group. Acquisition of Pöyry SwedPower AB strengthens Pöyry’s expert resources, opens major opportunities for common projects globally, and gives access to the Swedish market in the energy sector. The Oil and Gas business was divested.
Operational excellence programme
- The operational excellence programme in Finland was concluded as planned in 2011. The targeted annualised operating profit improvement of EUR 15 million was achieved partly through the operational excellence programme and partly through increased activity.
- In 2011 the programme was launched in Germany. During the year the efficiency improvement measures resulted in restructuring costs of approximately EUR 5 million. The targeted annualised savings, approximately EUR 6.5 million, are expected to be achieved by the end of 2012.
