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ROCKWOOL Group’s new CEO focuses the business

After a thorough analysis, the CEO of the ROCKWOOL Group is introducing a global programme of change to raise the level of ambition for the business.

Jens Birgersson has devoted his first months as CEO of the ROCKWOOL Group to carrying out an in-depth analysis of the company’s performance. His conclusion is clear. If the company is to maintain and develop its position as the leading global supplier of stone wool – as it has to – it will have to raise profitability.

‘Stone wool has some superb characteristics. The combination of fire safety and energy efficiency is unique. Measured over a period of 50 years, our products save more than 100 times the energy that goes into producing them. The global society’s ever-increasing focus on energy efficiency presents us with some outstanding opportunities, but growth has to go hand in hand with income,’ says ROCKWOOL Group CEO Jens Birgersson.

The ROCKWOOL Group has been in a global growth phase for some time, and is now represented in more than 30 countries. While the company has been expanding in many parts of the world, the focus has moved away from profitability and organisational synergies. This will now be changed. The coming years, the company will primarily focus on Europe and North America.

Special programme to safeguard the business

‘For many years now, the Group’s profitability has been too low, and that is not good enough for a company that is the world leader in its field. It is not sufficient for us to have excellent products – we also need to manage our business with excellent results on the bottom line,’ Jens Birgersson explains.

Birgersson has launched a worldwide transformation programme to introduce a new and more global approach to Procurement, Price & Product Management as well as Customer Experience. The goal is to create synergies and scale benefits and a more effective organisation with more advanced systems and tools.

A new management team and a reduced organisation

A more efficient company also means fewer employees. As part of the exercise of creating greater synergies and improving efficiency worldwide, the insulation manufacturer will need to say goodbye to approximately 500 employees across the Group. The programme is not targeted at the company’s production employees in the factories but the white-collar functions.

In an attempt to create an organisational structure with fewer layers and a more flexible decision-making processes, the Group is also changing its management structure. The executive management will be increased from five to nine individuals. New competencies will be brought in to top management and the distance from the top to the bottom of the organisation will be shortened.

‘With today’s level of ambition, we need a reinforced management team, capable of raising the bar and embark on this journey to build on the company’s leading global position,’ Jens Birgersson concludes.