Continued decentralisation with a new group structure

December 20, 2019

LKAB is taking the next step in the development of its decentralised organization with a changed group structure. Three divisions will be replaced by two business areas, inter alia in order to distinguish more distinctly between group matters and production matters.

The three divisions, Northern Division, Southern Division and Special Products Division will become two business areas, Iron Ore and Special Products. Michael Palo will become Senior Vice President for business area Iron Ore.

The structure with production locations will remain, while the new structure within the business areas will come into force during the first quarter of 2020. During the transition period, Michael Palo will continue as head of the Northern Division. Magnus Arnqvist will continue to be responsible for the Southern Division and he will report to the Senior Vice President for business area Iron Ore. Leif Boström will become Senior Vice President for business area Special Products.

Communications will move from CEO Staff to form a new unit, Communication and Climate. The position for business intelligence, energy and climate that previously sorted under Personnel and Sustainability will be moved to the new unit.

Niklas Johansson, whose previous roles include State Secretary for the Ministry of Enterprise and Innovation as well as the Ministry for Foreign Affairs, will become the new Head of Communication and Climate. Bo Krogvig will have responsibility for the function until Niklas takes up his post.

A new CEO Staff function to be known as Strategic Projects will be formed. The staff will include Bo Krogvig. The assignment will be to strengthen the work of strategic development projects.

The new structure will apply as of 1 January 2020.

LKAB is an international high-tech mining and minerals group that mines and upgrades the unique iron ore of northern Sweden for the global steel market. Sustainability is core to our business and our ambition is to be one of the industry’s most innovative, resource-efficientand responsible companies. The group had sales of about SEK 26 billion in 2018 and employs about 4,200 people in 12 countries. Other group business include industrial minerals, drilling systems, rail transport, rockwork services and property management.