schlott gruppe Aktiengesellschaft / Strategic Company Decision/Restructure of Company
27.10.2009
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- Centralisation of all administrative functions
- Planned streamlining of corporate structure
Freudenstadt, 27 October 2009. schlott gruppe AG is planning to standardise
all administrative and related functions, with the express purpose of
bringing them together at a central level. In parallel, the company is
looking to streamline its overall corporate structure. Against the backdrop
of continuing difficulties within the market as a whole, the measures
planned by schlott gruppe AG are expected to produce much-needed savings of
eight million euros which will become fully effective in fiscal year
2011/12. In addition to the measures introduced in summer, further cost
reduction measures in the region of four million euros annually are
planned. schlott gruppe AG will thus significantly strengthen its market
position.
In mid-2009, the exchange-listed company, in a first step, had announced
measures aimed at realigning its production capacity in response to a
significant decline in demand. Within this context, the company's annual
production volume was scaled back by 20 per cent, from 600,000 to 480,000
tonnes. At the same time, the overall headcount was reduced by a
considerable margin. Additionally, all employees agreed to forgo part of
the one-time benefits payable under collective wage arrangements.
The most recent measures announced by schlott gruppe AG are aimed at
adjusting average costs in line with sales prices that have continued to
plummet. With this in mind, schlott gruppe AG intends to bring together the
administrative units currently operating at various facilities within
schlott gruppe AG and introduce a centralised structure. The latter will
encompass the group's administrative functions as well as all related
areas. As part of the latest action plan, around 180 jobs will be cut
throughout schlott gruppe AG. Negotiations concerning staff downsizing are
to commence shortly with employee representatives and the trade union
ver.di.
Moreover, schlott gruppe AG is planning to simplify its structure. Instead
of operating with eight German subsidiaries, as is currently the case,
schlott gruppe AG intends to work with four operational units. As Bernd
Rose, CEO of schlott gruppe AG, explains, 'The final scope of operations
will depend to a certain extent on tax and legal issues, which we are
currently assessing. For precisely these reasons, our foreign subsidiaries
have not been included.'
In pursuing its programme of streamlining and in introducing a centralised
administration, schlott gruppe AG expects to achieve savings of eight
million euros annually.
With the market performing less favourably than originally anticipated,
schlott gruppe AG has identified the need for additional savings of four
million euros per year. The measures required to achieve this are to be
discussed with staff representatives and ver.di in the near future.
Bernd Rose commented on this, 'If we are to secure the future of our
company, we must respond to the current price- and capacity-related issues
as quickly and decisively as possible by scaling back our average costs to
a level that is sustainable in the long term. We shall consistently pursue
all avenues open to us once we have implemented our new administrative
structure. In order to counteract the adverse effects associated with yet
another severe dip in the market, we will all have to make an additional
contribution to cost streamlining beyond the staff cuts already planned. We
are confident that these measures will prove successful in terms of
manoeuvring our company to a secure position within a challenging market
environment.'
schlott gruppe AG
Marco Walz
Investor Relations & PR
WittlensweilerstraÃe 3
72250 Freudenstadt
GERMANY
Tel.: +49 7441 531-230
Fax: +49 7441 531-204
marco.walz@schlottgruppe.de
www.schlottgruppe.de
27.10.2009 |[![CDATA[|[a href="http://www.dgap.de"|]Financial News transmitted by DGAP|[/a|]]]|]
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Language: English
Company: schlott gruppe Aktiengesellschaft
WittlensweilerstraÃe 3
72250 Freudenstadt
Deutschland
Phone: +49 (0)7441 531-230
Fax: +49 (0)7441 531-204
E-mail: marco.walz@schlottgruppe.de
Internet: www.schlottgruppe.de
ISIN: DE0005046304
WKN: 504630
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart
End of News DGAP News-Service
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DGAP-News: schlott gruppe Aktiengesellschaft: schlott gruppe AG to introduce central administration
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