KH Group Unveils New Operating Model for Improved Profitability
KH Group Concludes Change Negotiations
KH Group Plc has successfully concluded negotiations aimed at reforming Indoor Group's operational structure. This vital step was taken on December 4, 2024, marking a new chapter in the company’s journey toward enhanced profitability and streamlined operations.
Details of the Negotiation Outcomes
The negotiations, which began on October 21, 2024, involved discussions surrounding the employment of 635 staff members within Indoor Group. Initially, it was anticipated that up to 200 positions could be affected. However, the final results showed that 162 staff members would face termination as part of the restructured operational plan.
Significance of the Operational Reform
This structural reform is a component of a broader strategy to consolidate Asko and Sotka stores, which have been operating in close proximity. By merging these two well-established Finnish brands, KH Group aims to leverage their strengths to enhance customer experiences and expand the available product offerings.
Expected Impact on Profitability
With the updates to their operating model, KH Group expects to achieve an annual operating profit improvement of at least EUR 10 million by the end of 2026. This financial enhancement is crucial, especially considering the current competitive landscape which poses significant challenges for businesses in the sector.
Leadership's Commitment to Progress
As the CEO of KH Group, Ville Nikulainen expressed confidence in the new operational strategy and its potential to strengthen the company's market standing. Lauri Veijalainen, CEO of Indoor Group, has also emphasized the importance of these changes in promoting operational efficiencies.
Comprehensive Strategy Overview
KH Group is not just focused on immediate improvements but is also looking toward a long-term vision where it can position itself as a leader in the Nordic markets. The newly configured business strategy aims to create a robust industrial group around KH-Koneet, significantly boosting its production capabilities and market outreach.
Company Profile
KH Group Plc operates in various sectors, including the supply of commendable construction and earth-moving equipment, as well as retail in furniture and interior decoration. Furthermore, it’s also known for manufacturing rescue vehicles, demonstrating a diversified portfolio that caters to various market needs.
Contact Information
For further inquiries regarding the operational changes, CEO Ville Nikulainen can be contacted at +358 40 045 9343, or Indoor Group's CEO Lauri Veijalainen at +358 46 876 1648.
Frequently Asked Questions
What are the main goals of the new operating model?
The primary objective is to improve profitability by consolidating operations and enhancing customer experience through better service delivery and a broader product range.
How many positions will be eliminated in the restructuring?
A total of 162 employment positions will be terminated as a result of the negotiations.
When did the negotiation process begin?
Negotiations commenced on October 21, 2024.
What financial impact is expected from the operational changes?
KH Group anticipates an improvement of at least EUR 10 million in annual operating profit by the end of 2026.
Who can be contacted for more information on these changes?
CEO Ville Nikulainen and Indoor Group CEO Lauri Veijalainen are available for additional inquiries regarding the negotiations and new operational changes.
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