Neste Completes Integration of Three Renewable Business Divisions through Merger – EQ
In Short : Neste successfully integrates three renewable business divisions via merger, marking a significant milestone in streamlining operations and optimizing synergies to bolster its position as a leader in the renewable energy sector.
In Detail : Neste has completed its organizational restructuring, a process that was initially announced on November 1, 2023. The company unveiled its decision to merge its three renewable business units into a single Renewable Products business unit, while also restructuring its functions to better align with business-driven operational methodologies. This move towards a more streamlined organizational structure and operational model is aimed at enhancing Neste’s ability to execute its growth strategy, thereby improving cost-efficiency and fortifying its long-term competitiveness.
The expected outcome of these organizational changes was a projected reduction of approximately 400 job positions globally. Following extensive consultations regarding the impending changes, Neste has confirmed a reduction of approximately 320 job positions in Finland. Furthermore, an estimated 70 job roles globally are anticipated to be affected. In response to these changes, Neste has undertaken various supportive measures to aid its employees in navigating through this transitional period.
It is forecasted that the restructuring efforts will yield total annual cost savings of approximately €50 million. During its Capital Markets Day in June 2023, Neste outlined its ambitious target to generate over MEUR 350 in value through its Neste Excellence program by the end of 2026, with the year 2022 serving as the new base year. These strategic organizational changes, combined with a more streamlined development portfolio, represent significant strides within the framework of the Neste Excellence program.
Neste, specializes in developing innovative solutions to address climate change and facilitate the transition towards a circular economy. The primary activities of the company revolve around converting waste, residues, and cutting-edge raw materials into renewable fuels and sustainable raw materials used in the manufacturing of plastics and diverse other materials.
As a global leader in the production of sustainable aviation fuel and renewable diesel, Neste is at the forefront of advancing renewable and circular feedstock solutions for polymers and chemicals. By leveraging its expertise, Neste assists its customers in reducing their greenhouse gas emissions by a significant margin, with a target of at least 20 million tons annually by 2030.
Neste is committed to making its Porvoo oil refinery in Finland the most sustainable refinery in Europe by 2030. The company has set ambitious targets, including achieving carbon-neutral production by 2035 and reducing the carbon emission intensity of its sold products by 50% by 2040. Neste upholds rigorous standards for biodiversity, human rights, and its supply chain practices. Its commitment to sustainability has earned it consistent recognition, with Neste being included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies.
In 2023, Neste reported a revenue of EUR 22.9 billion, underscoring its significant presence and impact in the renewable energy and sustainability sectors.
