Tag Archives: service

Metso Outotec strives for cost synergies, emission cuts with warehouse optimisation

Metso Outotec says it is proceeding with its program to consolidate its warehouse locations and transportation processes for spare parts, wear parts and related services globally, targeting increased availability, improved customer service and reduced CO2 emissions.

The optimisation of logistics is included in the company’s €120 million ($146 million) cost synergy target, accounting for more than €20 million of this amount.

The combined Metso Outotec network has covered more than 40 distribution centers. Once the network is optimised, the company will have 18 warehouses or distribution centres located in all main customer markets, it says.

The new operating model is using strong partners who have recognised global capabilities in providing competitive warehouse services, Metso Outotec added.

Consolidation work in Asia, Africa, China and Europe will be concluded in the near future, the company says. Metso Outotec already announced that warehouse operations in Finland will be consolidated and outsourced, and a new warehouse will be established in Helsinki. Simultaneously, the current spare and wear parts warehouse in Tampere will be closed.

The new model will be fully implemented by the end of the first half of 2021, it says.

Jarkko Aro, Senior Vice President of Customer Logistics at Metso Outotec, said: “Our target is to enable world-class logistics with easily scalable operations. Flexible, state-of-the-art warehouse operations will allow orders to be collected and dispatched to customers directly from central warehouses. The new model enables considerable savings in the end-to-end freight costs, streamlines transportation, and significantly reduces CO2 emissions.”

Aro added: “By the end of the third (September) quarter of 2020, we already achieved a 7% reduction of CO2 emissions in our logistics compared to 2019. We are extremely happy to be at the forefront with our CO2 reduction targets.”

Metso Outotec has announced it is targeting a net positive impact on the planet with a commitment to the 1.5 °C journey. This will be implemented through a sustainable offering, innovations and actions, and be measured by Science Based Targets aiming at a 50% reduction of emissions in its own operations by 2030, compared with 2019, and a 20% reduction of logistics emissions by 2025.

Multotec continues to service miners during COVID-19 outbreak

Multotec has reaffirmed its support for customers during the COVID-19 outbreak, saying it will continue to provide assistance, especially to operations declared as essential services, throughout this tumultuous period.

As a global company serving six continents, the mineral processing original equipment manufacturer has operations in Canada, Chile, Australia, Europe, China, Ghana, Zambia, Botswana, Mozambique and South Africa.

Multotec CEO, Thomas Holtz, said: “We certainly find ourselves in challenging times and the global COVID-19 pandemic is giving us the opportunity of modifying the way we do business across the world.”

With South Africa currently in lockdown, Multotec is producing only ‘essential services’ products there, but expects to return to full production at the end of the lockdown on April 17, 2020, Holtz said.

“Our manufacturing facilities in China are fully operational, while our facilities in Canada, Chile and Australia are in various stages of operational capacity,” he says. “We have committed to working on weekends and over public holidays over the next months to ensure any order backlogs are caught up and there is the least possible disruption.”

Holtz highlighted that where some countries’ mining and power generation operations have been declared by their governments as essential services, Multotec is providing full product and service support from its local bases in these locations.

“The safety of our staff and customers is an absolute priority and every precaution is being taken to ensure the continued health of all our stakeholders,” he says. “At the same time, please be assured that – as far as possible and using various means – we continue to provide full technical and sales support to all our customers, wherever they may be.”

Multotec has taken the worldwide travel restrictions as an opportunity to run online training workshops in multiple languages with many customers in remote locations, it says. There are also informative training videos available on the company’s YouTube channel.