02-13-2014

Further Optimization of Production Facilities – SGL Group Closes Plant in Narni/Italy

• Closure is a necessary component of the Company’s realignment and the SGL2015 cost savings program
• Redundancy scheme in preparation for approximately 120 jobs

Wiesbaden, February 13, 2014. SGL Group – The Carbon Company – today announced the closure of its Italian graphite electrodes plant in Narni (Umbria) and of the related administration office in Lainate. The closure is a component of the Company’s global realignment strategy and the SGL2015 cost savings program.

The market for graphite electrodes, which are used in the recycling of scrap steel, has come under pressure due to unfavorable price developments and weak demand in particular. In the coming days, discussions with the unions about a redundancy scheme will be initiated and the wind-down of the site, which is home to approximately 120 jobs, will begin. Following the closure of the graphite electrodes plant in Lachute, Canada, SGL Group has now taken a further step towards optimizing its capacities across the Company, strengthening the Group’s competitiveness and securing its cost position. SGL’s global production network is committed to ensuring that the high quality of SGL’s products and services will be maintained during the closure phase.

Focus on cost savings of Euro 150 million by 2015
The implementation of the SGL2015 cost savings program, which was launched in August 2013, is progressing according to plan. The Company has announced and, in many cases, already implemented numerous measures for the streamlining of its global production network and organizational structure as well as the optimization of its portfolio. As a result, SGL Group is confident that it will achieve its planned cost savings target of around Euro 150 million in total by the end of 2015.

About SGL Group – The Carbon Company

SGL Group is one of the world’s leading manufacturers of carbon-based products and materials. It has a comprehensive portfolio ranging from carbon and graphite products to carbon fibers and composites. SGL Group’s core competencies are its expertise in high-temperature technology as well as its applications and engineering know-how gained over many years. These competencies enable the Company to make full use of its broad material base. SGL Group’s carbon-based materials combine several unique properties such as very good electrical and thermal conductivity, heat and corrosion resistance as well as high mechanical strength combined with low weight. Due to industrialization in the growth regions of Asia and Latin America and increased substitution of traditional with innovative materials, there is a growing demand for SGL Group’s high-performance materials and products. Products from SGL Group are used predominantly in the steel, aluminum, automotive and chemical industries as well as in the semiconductor, solar and LED sectors and in lithium-ion batteries. Carbon-based materials and products are also being used increasingly in the wind power, aerospace and defense industries.

With 44 production sites in Europe, North America and Asia as well as a service network covering more than 100 countries, SGL Group is a company with a global presence.In 2012, the Company’s workforce of around 6,700 employees generated sales of €1,709 million.The Company’s head office is located in Wiesbaden.

Further information on the SGL Group can be found online at: www.sglgroup.com.

Important note:

This press release may contain forward-looking statements based on the information currently available to us and on our current projections and assumptions. By nature, forward-looking statements involve known and unknown risks and uncertainties, as a consequence of which actual developments and results can deviate significantly from these forward-looking statements. Forward-looking statements are not to be understood as guarantees. Rather, future developments and results depend on a number of factors; they entail various risks and unanticipated circumstances and are based on assumptions which may prove to be inaccurate. These risks and uncertainties include, for example, unforeseeable changes in political, economic, legal, and business conditions, particularly relating to our main customer industries, such as electric steel production, to the competitive environment, to interest rate and exchange rate fluctuations, to technological developments, and to other risks and unanticipated circumstances. Other risks that in our opinion may arise include price developments, unexpected developments connected with acquisitions and subsidiaries, and unforeseen risks associated with ongoing cost savings programs. SGL Group does not intend or assume any responsibility to revise or otherwise update these forward-looking statements.

back to overview