As part of the “SGL2015” cost savings program announced at the beginning of August, 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 €150 million by the end of 2015, based on the actual costs for 2012.

Thereof savings of €50 million will already be realised in 2013. In connection with the program, 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.

Robert Koehler, CEO of SGL Group, said: “Together with the Company’s top management we have developed the packages of measures for our group-wide ‘SGL2015’ cost savings program that are to be implemented largely in 2013 and 2014. It has been achieved in close cooperation with the Supervisory Board which will follow the respective implementation continuously.

"We have set ourselves the goal of achieving cost savings by the end of 2015 totaling approximately €150 million with ‘SGL2015’. The objective of ‘SGL2015’ is to sustainably enhance SGL Group’s competitive position and simultaneously improve its profitability.”

With the program SGL Group responds to the difficult market conditions, characterized especially by unsatisfactory price developments in graphite electrodes, a cyclical downturn in our graphite specialties business as well as ongoing losses in the Business Area Carbon Fibers & Composites due to delays in the development and start-up phase.

Review of production network and portfolio

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.

Efficiency gains through the streamlining of organizational structures

Along with the streamlining of the activities and the portfolio, the Company will also review and adjust its organizational structures. This will lead to a simplification of business processes and the streamlining of management structures.