Valmet installs new CEO amid strategy change

Valmet Automotive, whose customers include Mercedes-Benz and Porsche, has appointed a new CEO as it pursues a strategy of more independent business lines.

Pasi Rannus has been promoted to the post from his previous role as head of vehicle contract manufacturing, replacing Olaf Bongwald. 

The new appointment comes as Valmet allows its separate business units more autonomy.

"With more independent business lines, we will be able to make more effective use of the expertise and competitive infrastructure of our operations and seek new business opportunities in the way that best suits each business line," Rannus said in the statement. 

In contrast, Bongwald, 57, wanted to create a more uniform group out of Valmet's different business areas, Automobilwoche, Automotive News Europe's sister publication, reported. The approach didn't fall in line with the advisory board's aspirations. 

The Finnish company has production locations in Finland, Germany, and Poland. Its three main business lines are vehicle contract manufacturing, electric vehicle systems and roof systems.

In October Valmet started production of the Mercedes-AMG GT 4-Door Coupe at its car plant in Uusikaupunki , 250 km west of Helsinki. It recently opened a factory in Kirchardt, near Heilbronn, Germany to supply Porsche with battery systems.

The company's net sales in 2022 were 604 million euros.

Valmet expects revenues of more than 1.1 billion euros for its battery production business in 2023 compared with 850 million euros in 2022.