Annual report 2003

however, was in reconfiguring a precious metals refining operation
that had notable overlaps between the Hoboken and Hanau sites.
The new structure of the combined refining operation was defined
by the end of the year. Although this led to 30 job losses at Hanau
the new configuration places the business on a better development
footing for the future and allows Umicore to build on the respective
strengths of both operations.
Workforce breakdown
by business group
Advanced Materials 12%
Precious Metals Services 10%
Precious Metals Products
and Catalysts 28%
Zinc 25%
Copper 15%
Corporate and Investments 10%
Geographical spread
of Umicore´s workforce
(including associates)
Belgium 28%
France 10%
Germany 12%
Other Europe 17%
North America 4%
Latin America 7%
Asia (other) 9%
China 7%
South Africa 6%
In keeping with the company’s desire to find equitable solutions
to all issues involving restructuring and workforce reductions,
all these changes were brought about after a process of dialogue
and negotiation with the respective workforce representatives.
A broader R&D portfolio
A new configuration for human resources
The new Umicore now has 11,470 employees in fully consolidated
companies and some 3,618 in associated companies and joint
ventures. It has also taken on an even more international profile.
The integration of PMG also added significantly to the weight of Umicore significantly strengthened its presence in terms of
the Group’s research and development efforts. Umicore can now production facilities and personnel in Germany, Latin America and
rely on a R&D team of more than 500 people. A centralized North America.
Research Development and Innovation function (RDI) based in
Olen, Belgium, manages an extensive pipeline of research and
development projects at Group level and in support of many of
the business units. This centralised function also contains a Venture
Unit, which acts as an incubator for promising new initiatives, and
an ideation function, Umagine, which seeks to generate innovative
products or processes and business solutions from within the company.
In September 2003 a new Human Resources Management (HRM)
organization was established in line with the operational and
cultural needs of the new Group. The global HR structure
encompasses 35 countries and 105 different locations and this
warranted a more decentralized approach than had been the case
in the past. Responsibilities now largely rest with the HR functions
at country or regional level while the corporate HR function guides
Although the centralized function supports R&D at business group the overall policy formulation, management development and
level where required, a significant research and development
effort is carried out within the business units themselves. This is
HR networking.
notably the case in the area of Automotive Catalysts where extensive
development and testing is carried out in conjunction with customers
in order to ensure optimum product specification in a sector driven
by rapidly evolving and ever more stringent standards for vehicle
emissions.
The Umicore Group’s overall R&D spend on a full year basis
is set to increase from ¤ 30 million prior to the acquisition to
some ¤ 75 million.
A strong spirit
Change can often prove a difficult process, particularly for those
directly affected by job cuts and restructuring measures. However,
the changes that have been brought about at Umicore during 2003
have enjoyed a high level of support throughout the Group.
The reconfiguration process during the last six months of the year
involved tight deadlines and a heavy workload for many within
the new Group. That the company was already able to meet most
of its integration targets by the end of the year was a result of
Focus on competitiveness
excellent teamwork and high levels of dedication from a large
In order to safeguard the cost competitiveness of its smelting
and refining operations, a number of other restructuring measures
were announced during 2003. The workforce at the Olen site is
being reduced by 127 full time equivalents, in parallel with the
carving out of the copper activities in a separate entity. This is
number of teams. Many of these teams were made up of people
who would have been strangers at the outset. This suggests that
coherent and clear targets, coupled with honest communications,
helped to break down any perceived cultural barriers in the coming
together of two organizations.
mainly the result of the streamlining of the central site support Umicore has changed significantly over the course of twelve
functions. Umicore’s central engineering function was also months with a far larger product offering, a wider geographic
dissolved, resulting in the closure of the Louvain-la-Neuve office. reach and a workforce that has increased not only in numbers but
At the beginning of 2004 a plan was also unveiled to improve
the cost structure within Umicore’s zinc smelting business. It is
envisaged that the programme will enable cost reductions of
some ¤ 14 million by 2006 and will result in a workforce reduction
of some 136 people – primarily in the support functions of
the smelting facilities at Auby (France) and Balen (Belgium).
also its diversity in terms of skills, backgrounds and nationalities.
Because of this, the new Umicore approaches 2004 in confident
mood and buoyed by a strong spirit and sense of common identity
and purpose.
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