Transpacific’s shareholders have voted in favour of the proposal to change the company name to Cleanaway Waste Management Limited, while the CEO announced a cost reduction program towards a new operating model.
The vote at the company AGM in Brisbane on Friday (30 October) signalled the start of work to rebrand and streamline Australia’s leading waste management and recycling company. The name change will come into effect on 1 February 2016.
“By uniting the business under a single master brand – Cleanaway – we will present an integrated, customer driven, total waste management company,” said CEO Vik Bansal.
“This removes confusion from our customers as to who they are actually transacting with and allows for greater cross marketing of our services.”
Mr Bansal also chose the AGM to announce the implementation of a costs reduction program, working to a new operating model to reduce complexity within the company and to cement Cleanaway as the market leader.
As a result of implementing strategic changes, by June 2017 Transpacific expects to permanently reduce its cost base by $30 million on a continual 12-month run rate.
“These cost reductions will be achieved by reducing our corporate and administrative costs across the entire organisation and comprise of both labour and non-labour costs,” added Mr Bansal.
“However, our customer facing areas such as drivers, customer service and sales staff will not be included in these cost reductions. These people are the frontline of our operation, they are the key to driving revenue growth.”
Mr Bansal said many of the actions to implement the cost reduction program were in progress, and will deliver some benefits in the current financial year.
Finally, the CEO also took the opportunity to share the company’s new mission statement – making a sustainable future possible.
“That is for our investors, our people, our customers and society in general,” he said. “And it won’t be compromised.”