Excellences, ladies and gentlemen,
It is a great pleasure for me to speak in this forum today. I am the President and CEO of Outotec, a technology company that has had environmental aspects in its competitive equation during its decades long existence.
First let me say a couple of words about Outotec. We deliver proprietary technologies for the mining and metallurgical industries, our expertise covers most metals and the whole chain of processing minerals to metals. We have always developed own technologies and had large R&D centers and resources. As a result, many of our technologies are market leaders and industry benchmarks. Outotec is operating globally and has employees in 21 countries. We also use subcontractors in larger projects. Outotec has been listed on the OMX Nordic Exchange Helsinki since 2006. We have been growing fast in the recent years, which can be seen both from the sales and the operating profit figures. We expect our net sales in 2007 to exceed one billion euro.
 |
|
More out of ore! is our slogan and it describes well Outotec’s mission, which we share with our customers. We help our customers to produce metals competitively. Our own success depends on how much we can increase our customers’ competitiveness.
Our customers will run their plants over 20 years. Therefore they need to consider their future sustainability today and invest in clean technologies. I believe that only those producers survive in the long run who use sustainable technologies. |
|
 |
|
How profitable is it for industrial companies to use clean technologies?
Here I want to illustrate the concept of environmental profit. This orange curve shows how the environmental profit accrues when an industrial plant is improving its environmental performance through investing in clean technologies. The benefits for a producer are typically better recoveries or larger output, lower energy and water consumption, smaller emissions, improved working conditions, etc. All this resulting to happier employees, better reputation for the company and increased shareholder value. |
 |
|
Improving the environmental performance is profitable to a certain extent. Any further investment in improving environmental performance would decrease the company’s profit. Normally the authorities set limits and grant environmental permits here. But it is more advantageous for the producers to invest more in the latest technologies and go straight to the point where they can maximize their environmental profit. |
With new technologies it is possible to utilize the potential in full. In the win-win area the competitiveness of a company will increase. So, I believe that taking care of the environment by using clean technologies is not in contradiction with profitability.
How does a technology supplier succeed?
Growing economies, like China and India, need more efficient and clean production methods, energy is becoming a critical factor in many industrial investments, small factories are being closed down and replaced by new and large capacity plants, people want clean environment and safe working conditions, the world’s natural resources need to be utilized efficiently. All these factors create new business opportunities for technology companies.
However, the technology supplier must be proactive and develop better technologies, technologies that can be used 20 years ahead. It is not enough to develop clean technologies. The clean technologies must also be economically viable. And I believe that only those technology companies survive in the long run who deliver sustainable technologies.
Corporate responsibility is becoming more and more important in the heavy industries. However, many companies are not using their environmental profit potential in full. Too strict environmental regulations, or too large environmental investments, are in nobody’s interest and may result in total unprofitableness. The companies are voluntarily investing in environmental performance only if it brings profit. I am totally convinced that profitability and environmental sustainability will go hand in hand and that it requires innovative technologies.
Technology development is the key!
As a conclusion, I believe that adding environment to the competitiveness equation does not hinder equitable growth, on the contrary, it can be a booster for competitiveness and growth.
Thank you for your attention.
Download the presentation