Following a warning about future profitability, Finland’s Nurminen Logistics is streamlining its organisation and making changes to the composition of its group management team.
The company’s forwarding and terminal businesses in Finland are being consolidated under one business leader in order to improve cooperation between the two functions, and bring efficiency in sales and operations, said Nurminen.
Ari Penttinen, currently managing director of NR Rail - a joint venture between Nurminen Logistics and RTK Rail Transports, has been nominated senior vice president and will be in charge of this business unit.
Penttinen was previously ceo at Kiitosimeon group. Risto Holopainen, previously in charge of terminal business, reports to Penttinen and will focus on industrial customers and projects.
The recent profit warning was the result of enterprise resource planning (ERP) system integration being more costly than anticipated, with a delay in full-scale implementation having a negative impact on operations and reporting.
In November, Marko Tuuainen resigned as ceo of Nurminen Logistics and the company said it would start the recruitment process for a new ceo immediately. Teppo Talvinko assumed the role of acting ceo, and Nurminen has revealed that he will continue as interim ceo / cfo.
Mike Karjagin will be in charge of the company’s international rail services and it will be strengthening its sales and marketing through the recruitment of a sales and marketing director, tasked with gaining new customers and developing service concepts.
Talvinko, Karjagin and Penttinen make up the management team, with the support of Olli Pohjanvirta, chairman of the board.
The company added that slower than estimated development in volumes between July and September, lower growth in new customers and costs related to an increase in regular rail services to and from China has also affected results and led to the profit warning.
However, the Chinese rail service is expected to bring significant new business and improve profitability in the near future whilst the ERP project is expected to bring improved efficiency during 2019.