Situation

$100M+ subsidiary of $2.5B public metals and minerals company. Subsidiary business unit produced tin lead solder products for the construction and automotive industries, both of which were in decline. Business unit had been built by acquisition over time and was managed under multiple independent country leadership structures. Local structures interfered with efforts to consolidate the business and eliminate manufacturing redundancies. Business was a loss making unit but core to the parent’s larger overall metals business.

Action

Developed and implemented a plan to consolidate 3 out of 6 manufacturing and warehousing locations in France and the UK. Plan also included the elimination of the local country leadership structures and the formation of a pan-European operating unit.

Result

Business unit profitability improved by $6M on a $4M investment within 12 months of implementation. This consolidation enabled the parent corporation to further integrate the business unit into their larger and more profitable metals business, eliminating another leadership layer in the process.