Andrew Forrest will once again take the reins at Fortescue Metals as part of a restructuring that will see its nascent green energy business Fortescue Future Industries (FFI) gain equal ranking with its multi-billion-dollar iron ore operation with direct representation at board level.
Fortescue said it “will transition to a truly global company and restructure the organisation to have both the CEO of Fortescue and the CEO of Fortescue Future Industries reporting directly to the Board.
“Today’s announcement further signifies the evolution of Fortescue into a global green renewables and resources company, first announced in 2020.
“It will help to deliver Fortescue’s global green energy business strategy – to lower global emissions, to decarbonise Fortescue, and to create significant additional value for shareholders, through sharing green fuels and technology with the world,” the company told the market.
From what was in Wednesday’s ASX statement, Forrest’s return to the executive chair’s role is hands-on. Investors liked the news, sending the shares up 2% to $19.24.
A key change will see FFI’s executive team bolstered with the appointment of the former head of GE Europe, Mark Hutchinson, to head FFI. On top of that the former AGL boss Andy Vesey, will be appointed as FFI’s head of energy transition projects.
Forrest will act as the interim boss of the iron ore business when Elizabeth Gaines steps down as Fortescue CEO in August.
“This growth and value to shareholders is already evident with our shareholder base doubling since FFI was launched, with our investors ranging from top tier institutional banks to grassroots investors, all wanting to be a part of this mission, as we continue to strongly outperform our peers in the iron ore sector,” Forrest said in the announcement.
Gaines will retain a board role and act as FFI’s ambassador.
Hutchinson’s roles at US conglomerate GE included five years leading GE in China, before running its European operations and its 100,000 employees.
Vesey’s appointment is perhaps the most significant appointment. He stood down as AGL’s boss in 2018 after clashing with the Coalition government under Prime Minister Malcolm Turnbull over his plans to wean AGL off coal and move towards a clean energy future.
Now he returns in a high-profile position in a company that is has grown very green.
