Finnish chemicals company Kemira is merging its Municipal & Industrial and Oil & Mining segments into a new business unit called Industry & Water in order to improve efficiency and enhance its customer service.

The organization will consist of two segments, Industry & Water and Pulp & Paper, with the new structure targeted to go into effect on Jun. 1. The proposed restructuring is expected to deliver annual savings of €15-20 million with a full run rate by the end of 2017.

“By merging two segments into one, we create a bigger and stronger segment with around €910 million in revenue. Oil & gas and mining remain our key customer industries and we further strengthen our position in water treatment,” said Kemira's president & CEO Jari Rosendal, adding that the move is an additional important step toward achieving its strategic target to grow above the market.

As a result of the planned changes, president of the Oil & Mining segment, Tarjei Johansen, will leave the company this month. Antti Salminen, currently president of the Municipal & Industrial segment, will act as the interim president of the Oil & Mining business and region Americas from Mar. 9 until the merger is completed.