Ilpo Korhonen, the chief executive of Valmet Automotive, has relinquished his duties at the helm of the automotive manufacturer based in Uusikaupunki, South-west Finland.
Valmet Automotive reveals in a press release that the output of its manufacturing plant surged to an all-time high last year but adds that the robust growth did not yield the expected financial results due to “operational reasons”.
In spite of the lacklustre financial performance, the outlook remains bright for Uusikaupunki, assures Jarkko Sairanen, the chairman of the board at Valmet Automotive.
“Our objective for 2018 is to set another production record and recruit hundreds of new employees,” he says. “The board has concluded that this is the right time to make a leadership transition in order to guarantee the implementation of the measures necessary for our success.”
Valmet Automotive has yet to disclose its exact financial details for last year
Timo Kokkila, a member of the board at Valmet Automotive, says the result represents a slight decrease from the annual result of 1.9 million euros posted one year earlier. “It’s a poor result. We went slightly into the red,” he confirmed to Uusi Suomi on Tuesday
“If ramping up production doesn’t go according to plan, you end up with extraordinary items that raise the costs temporarily. The costs are permanent by nature, but they’re related to the efforts to ramp up [production] and achieve the capacity that’s required,” explained Kokkila.
He is also the chief executive of Pontos, an investment firm that owns 38 per cent of outstanding shares in Valmet Automotive
The duties of the chief executive will be performed on a temporary basis by Minna Huhtaniska, the general counsel at Valmet Automotive
Aleksi Teivainen – HT
Photo: Vesa Moilanen – Lehtikuva
Source: Uusi Suomi