Monday , 22 October 2018
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Konecranes appoints new CEO due to his M&A experience
Panu Routila

Konecranes appoints new CEO due to his M&A experience

Finnish company Konecranes has announced that Panu Routila will succeed Pekka Lundmark as CEO and President.

The chairman of Konecranes board Stig Gustavson said: “Routila’s skills of indirect leadership of complex organisations and his experience of merger and acquisition (M&A) related work very well match the needs of our group going forward.”

Routila told CM that over his career, he has worked on more than 150 M&A deals, making him “comfortable” with the prospect of further work in this area.

However, he noted that although M&A is “one of the alternatives for the future of the company”, he is not in a position to disclose Konecranes’ future plans until he begins his role in the autumn.

Profits from the company’s equipment section have been falling despite a succession of cost-cutting programmes.

On 20 July, Lundmark told investors that his successor would have to lead another cost-cutting programme unless volumes increased, which he judged as unlikely.

Routila will transfer from Ahlström Capital, a Finnish investment company with sales of around €1.5bn (US$1.7bn), where he has been President and CEO since 2008.

Konecranes CFO Teo Ottola will be promoted to Deputy CEO and will use the CEO’s powers if the position is not filled or in situations when the CEO is incapacitated to fulfil his duties.

Outgoing CEO Pekka Lundmark will leave the company on September 5 and Routila will start during the autumn, no later than by the end of the year.

Routila has experience from listed companies from his role as chairman of the boards of Ahlstrom Corporation, a paper and forest products company, and Vacon Plc, an electrical manufacturing company.

As well as Finland, he has worked in France and the USA and speaks English and French, as well as Swedish and his mother-tongue Finnish.