Uponor Corporation, Inside information, 15 February 2023 at 09:02 am EET
Inside information: Uponor launches a strategic transformation programme to strengthen resilience and the execution of growth strategy
Uponor Corporation is launching a groupwide transformation programme over the years 2023–2024. With the successful implementation of this transformation, Uponor aims to secure its long-term competitiveness and ensure the execution of its growth strategy. Creating a new Uponor-wide operating model will strengthen Uponor’s resiliency as a company, capability to adjust to changing market conditions and ability to better serve customer needs.
The programme includes investing into future growth through innovation and R&D, simplifying organizational structures, rationalizing product portfolios, enhancing factory utilization, enhancing procurement partnerships and driving globally harmonized processes and systems.
The transformation to this new Uponor operating model will result in a leaner and more efficient organization, while also producing expected annual cost savings of around EUR 30 million. Initial estimates are that the planned measures could result in the net reduction of up to 400 jobs globally. The detailed impact of the changes will be communicated, and when necessary, negotiated locally as the plans progress. As Uponor conducted the first activities linked to the transformation programme already in Q4 2022, cost savings are expected to be realised gradually from Q1 2023 and fully by the end of 2024. The total non-recurring costs associated with the transformation programme are estimated to be around EUR 25 million.
“Uponor’s updated vision is to be a leader in sustainable water solutions. We are well positioned in the market as the demand for energy-efficient heating and cooling systems as well as sustainable solutions for safe and clean water continues to grow.
We stay on course pursuing growth by maximizing the opportunities in our core businesses and driving sustainable innovation. The targeted cost savings and efficiency gains from this programme will be the fuel to invest into Uponor’s future. By creating this new Uponor-wide operating model, we will become more resilient, leaner and better serve our customers, improving our competitive advantage, while maintaining our People First culture.
Uponor’s transformation and the path ahead of us in the next two years will unite us as One Uponor and position us to lead the change in sustainable water solutions,” says Michael Rauterkus, President and CEO of Uponor Corporation.