Yesterday, Airgas, Inc. announced a significant restructuring when the North American firm realigned its 12 regional companies into four new divisions. Mike Molinini, Airgas Chief Operating Officer, described the restructuring as ‘critical’.
According to the restructuring, each of the four divisions will be led by a Division President who will report directly to a Division Chief Financial Officer, Division Vice President of Human Resources and Regional Company Presidents.
Airgas hopes that the four new divisions; North, South, Central and West, will help the firm realise the full benefits of its new SAP information platform.
Mike Molinini, Airgas Chief Operating Officer, described the restructuring as ‘critical’. In an official corporate statement he explained, “Now that we have successfully launched our Regional Company conversions in our phased implementation of SAP, it was critical to establish an operating structure that will enable us to realise the significant benefits of our new platform.”
He added, “Last year we announced an expected incremental annual operating income range of $75 to $125 million upon full implementation of the SAP system at our Regional Companies. We expect to see gains in areas such as accelerated sales growth, pricing management, and administrative and operating efficiencies. Our new divisional operating structure will enable us to capture these benefits and become even more responsive to our customers at the local level.”
In coordination with this, AIrgas issued two related leadership appointments for Distribution Operations and Gases Production. All of the appointments are effective from 1st July 2011.