SGL2015 Cost Savings Program
As part of the “SGL2015” cost savings program, SGL Group – The Carbon Company has initiated a comprehensive package of measures.
This package comprises the global production network, the organizational structure as well as the Group’s portfolio and is targeted to achieve cost savings totaling approximately EUR 150 million by the end of 2015, based on the actual costs for 2012. Savings of EUR 50 million will already be realised in 2013. There will be non-recurring expenses and extraordinary write-downs which will be recognized in accordance with IFRS in a timely manner, most of which should be accounted for with the 2013 annual financial results already. With the program SGL Group responds to the difficult market conditions, characterized especially by unsatisfactory price developments in graphite electrodes, a cyclical downturn in the graphite specialties business as well as ongoing losses in the business area carbon fibers and composites due to delays in the development and start-up phase. In particular, the global production network will be adjusted to the changed circumstances. This realignment is expected to improve capacity utilization and reduce fixed costs and includes a review of the production sites as well as potential relocating of production and consolidation of processes at certain sites within the production network. The restructuring of the company’s portfolio comprises the potential relocation or transfer of activities into partnerships as well the possible termination or disposal of non-core activities. Along with the streamlining of the activities and the portfolio, the company will also review and adjust its organizational structures.