Orica changes its operating model

Orica has carried out a shakeup of the business, dramatically realigning its business model.

Orica CEO Albert Calderon explained that current market conditions “make it critical that Orica has the right model to build closer relationships with customers, maintaining resilience and embedding its market leadership”.

According to the company, the move was carried out in order to ‘simplify operations, improve visibility of each area’s performance, and enable the business to respond to customer needs more effectively”.

Part of the shift is the splitting of Orica into four regional businesses, comprising Australia/Indonesia, North America, Latin America, and EMEA/Rest of the World.

Mergers and acquisitions, particularly around ‘make or buy’ strategies are also key going forward.

On the executive level, Scott Alexander will be appointed president of the Ground Support business, while a search is now underway for a new president of the Australia/Indonesia group.

“The new operating model will facilitate performance excellence by better aligning accountability and responsibility with delegations of authority,” Calderon said.

“This means EBIT responsibility will now sit within the regions, providing them with greater control over their financial results.”


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