Former Heidelberg Australia and New Zealand (HAN) head-honcho, Andy Vels Jensen has stepped up as managing director of PaperlinX operations in UK and Ireland as the paper merchant moves to further rationalise its operations there. He becomes an essential part of CEO Andrew Price’s team to fix the ailing European businesses that have continued to be a drag on the company.
Vels Jensen will be responsible for a slimmed down operation in the UK following the announced closure of PaperlinX logistics infrastructure in Nottingham, Sheffield and Leeds. The changes will see 65 jobs go even as a central IT platform provides further operational efficiencies.
The UK reorganisation will take place at the same time as 75 employees are made redundant across Germany. PaperlinX finally received approval from the German Works Council for a major restructure of its German business. This will see its Hannover and Leipzig sites closed and consolidation centred around the existing facility in Biebesheim.
- Andrew Price, PaperlinX CEO, and new UK interim managing director, Andy Vels Jensen
The reorganisation is a key part of Andrew Price’s strategy to return the company to profit and together with other restructuring plans over the past six months sees the company’s headcount drop by 340 (8.4%) from 4040 at June last year. The costs of the restructuring come to approx $9.5 million with more to come as Price continues to seek ways of removing costs and redesigning various business models.
Vels Jensen, although originally from Denmark, may be considered an honorary Australian in the new executive team. Price makes no apologies for considering his PaperlinX Australia executives to be a strategic asset in his battle to remake the company. Regular rotation of managers from the profitable local company to the Europe operations is seen as a conduit for more efficiencies.
Speaking with Print21 Wayne Johnston, PaperlinX deputy chief financial officer and executive general manager corporate, said, "He's a great operator and Andrew [Price] is very confident that he's the right man. It's a mutual fit. We were looking for someone to take a hands-on role in the UK over the next few months. Andy will be running the UK business, and will also be involved in restructuring projects. He's been consulting for a number of months before making the move, focusing on broader business strategies, identifying opportunities and pathways around diversified revenue streams."
Vels Jensen hung up his boots as Heidelberg Australia and New Zealand (HAN) managing director in late 2012, ending a 36-year association with the offset manufacturing giant. Passing the baton to Richard Timson, Vels Jensen packed up after 11 years on Australian shores and headed home to his native Denmark, where he set up his own management consulting and interim managements company called Business Explorer. The new appointment will see Vels Jensen based out of PaperlinX UK's Northampton head office.
In light of its ongoing restructuring efforts and following a review of its FY2014 financial forecasts, PaperlinX has confirmed its previous guidance of a marginally profitable underlying EBIT result for FY2014. Margins are also expected to grow due to pricing improvements expected in Europe in Q3 and Q4.